Yes, it is sad if someone becomes unable to deal with their finances in retirement.
But let's take your all size fits one "solution" to its logical conclusion - anyone, at any time could end up in a position where they can't handle their finances and risk losing their nest egg. Gambling, substance abuse, mental or physical issues, or just bad decisions. Some people have failed to maintain their house, and it ends up with major damage and can be worth zero and be unlivable.
So it seems you are saying we should not have any personal possessions. We might lose them. Let the govt have control over every aspect of our lives so we can't possible hurt ourselves. We can live in govt housing, eat govt cheese. Nothing to lose. FREEDOM IS SLAVERY. No thanks.
So yes, we should have something in place to help avoid these sad cases where the infirm lose their nest egg. I don't think making everyone more reliant on government payments is the way to go (everyone would need to pay for it also). There must be more strategic solutions to fit the specific problem.