"Taking out loans on your 401(k) is obviously not a wise decision but faced with illness, a job loss or other hardship, these people are left with little or no choice. And what happens once they deplete their 401(k) savings? They start collecting food stamps and disability.... America's pensions are under attack. As companies and states switch workers over from defined-benefit to defined-contribution plans, it will only accelerate pension poverty. Of course, there will always be critics claiming we can't afford public pensions, but ... we equally can't afford to starve people, forcing them to deplete their retirement savings and then have them collect food stamps and disability. The social welfare costs of pension poverty and long-term unemployment will break the system and place a huge burden on future taxpayers."