Prepare for another financial crisis decades down the road, maybe sooner with the issuance of 401k debit cards. It’s exactly what it sounds like. A debit card linked directly to your retirement account just like a regular checking account. ReservePlus, a provider in 401k loan processing, is the company that has made the 401k debit card possible. The scary thing is that some companies have already begun to offer this option to their employees. Among the reasons, less paper work for 401k loan processing and people not wanting to be tied off from their money just aren’t valid enough reasons to put so many at risk of having little to no savings at all when the time comes for them to leave the workforce. Not only does this promote irresponsibility (which is part of the reason the economy is the way it is today), but with the 401k debit card, we’re sure to see a lot more of the elderly ringing up fast food orders in the future. I like to think many of these senior citizens get bored while in retirement and working a part-time, low paying job keeps them busy and active. But I’m afraid this is not the case with many. Also, with more women outliving men, this would only put many women at risk of living and dying in poverty at their old age.
So what do you think: yay or nay to the 401k debit card?