I remember years ago when Enron and Worldcom collapsed. People who were retired/nearly retired lost a lifetime of investments. They found themselves on the cusp of their elder years and thrust into poverty overnight.
If (when) the stock market fails everyone is going to be in that same boat because all other avenues of saving money other than shoving it in a mattress or burying it in your yard is ultimately tied up in the market. I have to contribute to a 401k and pension plan to get employer contributions. So instead of a safe CD or savings account...my extra money is "playing" the market. I don't like this and predict it's going to get really ugly for lots of folks when finance buckles. I'm 10 years out from retirement and on edge just thinking about this. Then again, I know I won't be alone.