The following information will help anyone when they have that discussion with the youth of today on why it is so important to start early to build a solid financial foundation and let the power of compounding work its magic for the years ahead.  Melissa Phipps has written interesting article for the Balance which was recently updated in 2019 that points out how the retirement system once was.  The piece explains how it now changing due the many factors of evolving world.

She points out that the three-legged stool is a metaphor for how the post-World War II generation looked at planning for retirement. The three legs represent an employer pension, employee savings, and Social Security.  You need each one to build a strong retirement foundation. Without one, the three-legged stool would not function.

Does the Three-Legged Stool of Retirement Exist Today?  For many, it no longer exists, or it at least looks a bit different. Pensions and group insurance plans once offered by employers are quickly becoming scarce.  But since employees are making contributions through their paychecks, a 401(k) is more a part of the personal savings leg than the employer pension leg.

How Does Social Security Fit In?  The article states that you can find all kinds of projection and opinion about whether Social Security will still exist, Social Security trust funds are projected to be depleted by around 2034.  Changes, will be necessary so that younger workers will have benefits available.

The Three Legs of Future!  The retirement stool of the future would probably look more like a large column with two smaller legs. The two small legs are there to add a slight bit of stability, but the main personal savings column is what will hold up your retirement. This is why it’s so important to save as much as you can during your working years.

If you would like further detailed information, refer to the source below.   I am sure you will find it informative and will shed a new light of todays retirement objectives.

Source: The Three-Legged Stool of Retirement Planning