Remove the save/load crap & add permadeath + full loot. Otherwise it won't work.
The primary impact of failure in a game is to increase the significance of player decisions concerning life-and-death. Without permanent death there is less incentive for the player to consider in-game failure seriously. Severe consequences could intensify the sense of failure derived from their characters. Acts of heroism and bravery should only be accessible to the brave stereotypes, most likely people who roleplay as paladins, warriors, sorcerers, etc... While the most cautious individuals would adopt a rogue-like/wizard character.
I never understood "Luck" as one of the seven primary statistics of Fallout without permadeath. I mean, sure you always die in a gruesome way in Fallout, but what's the point of having Luck if I can easily reload my previous state?
Wouldn't "Luck" be more important if permadeath and full loot were present in the actual game?
If you're not gonna accept the risk of large penalties associated with failure, then don't even think about this at all. Some people might come up with the divergent story path reason, BULL. We don't want multiple story lines, we want IMMERSION. Xcom & Ultima are good examples of what I'm talking about. In Xcom we had a save/load feature, but the game wasn't even designed for that at all. In fact, most of the players who ENJOYED Xcom never made use of this during their game sessions. The fact of failing a mission was a joyful and painful experience, both great feelings for both were serving a roleplaying purpose. Taking insane risks to fulfill your mission and succeed was the most pleasent experience a player could ever have.