But, I meet people saving 20% of their income and don't have to worry about this in any way. Most people living paycheck to paycheck are doing so b/c they've known SS is their retirement.
Tell me - if you could go back in time to when you first started work, and saved 10% (So $4,000 on $40,000). Most can actually do that, no problem, starting out. It's not fun for one year, but they can. Year 2 they may have a raise, and now they don't even notice.
Now, they increase that by 1% for 10 years.
20%. Sitting pretty for retirement. WIth investing and diversifying you don't just own promises, but you'll keep up with inflation.