Assistance programs blocking retirement savings.
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|Tue, 05-31-2011 - 11:11pm|
I'm not sure if this is true. I wouldn't even know where to look for answers.
My sister told me just recently that because she is on daycare assistance, she is not eligible to contribute to a 401k. I completely understand the reasoning of this. We don't need people on welfare putting 50% of their paychecks away to be millionaires when they reach retirement age.
But it seems ridiculous that they would outright ban it. They are setting these people up to be poor for the rest of their lives. Why not let them contribute but no more than, say 3%. My sister, working at Walmart would be also getting Walmart's match of 3%.
The point of assistance programs is to help people until they can stand on their own 2 feet. People are poor for many different reasons but they usually involve bad financial planning. Why would we force them to continue their bad habits of poor financial planning.