It is already causing lot of problems for retired people. How much will this problem intensify in future ?
In my opinion many of those people that trusted the government and financial institutions to administer their money will come to regret their decision, as I really think it will become impossible to pay those people and they will stop receiving their pension or receive just a fraction of it on the future, so anyone that is young enough now, must prepare for that scenario and avoid to depend completely on that money, and do what they can to have a second retirement fund they manage on their own.
You have a point on this. So aside from relying on a retirement fund, one can always invest in other tangible assets such as real-estate or precious metals. Or other assets they think they can sell in times of financial needs and not just waiting from your retirement funds or savings.