Unless, of course, they own a house outright.
Most people retiring today do not have a "pension." A defined contribution plan is NOT a pension. The move towards screwing over people on retirement started back during the Reagan years.
Fifty-two percent of households of people 55 and older haven't saved a dime for retirement, though nearly half of those do have an employer pension. Among the remaining 48 percent of older households with savings, the median amount was $109,000 -- good for an annuity of about $405 per month.
The lack of savings is potentially problematic, the GAO notes, because the populous baby-boom generation is heaving into retirement with fewer pensions than its predecessors. In 1975, most workers with employer-sponsored retirement plans had pensions that provided a lifetime "defined benefit." As of 2012, such plans had 40 million participants, while 91 million workers had retirement savings plans such as 401(k)s, which are based on workers' own contributions and offer no guarantee of lifetime income.
Good old workers didn't see the scam way back when. They thought they were going to be millionaires when they retired.