Final answer:
Most workers save for retirement by contributing to 401(k)s and other savings plans, anticipating future income needs. The presence of Social Security may affect the amount saved, shifting the financial capital supply. Fraudulent use of embezzled funds for retirement savings is not typically representative of standard saving behavior.
Step-by-step explanation:
The statement in question suggests an assumption about the behavior of individuals who commit fraud which may not accurately represent the typical use of embezzled funds. In reality, most workers save for retirement by allocating their current surplus income into various retirement savings vehicles because they anticipate their income needs will be greater when they retire and their earning potential is reduced. Workers often use 401(k)s, which are retirement accounts with special tax status, allowing them to defer taxes until the funds are withdrawn. Additionally, the presence of programs like Social Security is thought to influence the amount workers save, potentially reducing the quantity of financial capital they set aside.
When discussing saving for retirement, it is critical to understand that individuals typically plan for their future by investing in financial markets today. If a person's income increases, they may opt to save more, adjusting their contributions based on changing future expectations. Social Security, for instance, is shown to have an effect on the saving behavior of individuals, potentially altering the aggregate supply of financial capital within the economy.