That's a very valid point to bring up but I think it makes a big mistake in assuming that people would rationally respond to the risk. People are pretty terrib

That's a very valid point to bring up but I think it makes a big mistake in assuming that people would rationally respond to the risk. People are pretty terrible at rationally evaluating risk and participate in provably harmful actions all the time - going to vegas or playing the lottery to spend some money and feel like a rich person for a while is totally valid, but playing the slots or the lottery to make money for your retirement is completely irrational. And yet, folks will play the lottery in the hopes they can retire more comfortably - even when their financial situation isn't so dire that structured saving wouldn't give them their desired level of comfort.