What financial issue is likely to arise if individuals do not save enough for retirement?

Individuals who do not save enough for retirement face the significant financial issue of decreased income once they retire, which can lead to financial instability. When people retire, they typically transition from earning a paycheck to relying on their savings, Social Security, or pensions. If adequate savings are not in place, the individual's funds can diminish rapidly, leading to a situation where their monthly expenses exceed their income. This scenario could result in a greater reliance on credit or depleting assets, ultimately making it difficult to maintain a comfortable standard of living and possibly leading to financial hardship.

The correct answer illustrates the reality that without sufficient planning and saving during their working years, individuals may find their available money dwindling once they are no longer able to earn an active income, impacting their overall quality of life during retirement.