I think it's the same kind of people who can't save any money out of their paycheck on their own, don't send money to their 401K if they have one, etc. Just bad day to day money management. So when they get the "windfall", they consider it "free money" for some large purchase or vacation or something.
A lot of these people were military, USAF to be specific, because I was being a volunteer in the tax program(doing people's taxes for free) on base when I was in.
As such, I KNOW that if they were that bad at control, and were looking to save for retirement, that it's ONE form to set up direct payment to the TSP program as a deduction from their pay. I have literally ZERO problems with that, think it's good. I varied between 10 and 20% into the TSP during my career, starting from the moment it became available.
Hell, I advised a few airmen to not file their taxes quite yet, telling them that if they opened an IRA, Roth or not, they could make a first year 50% gain on any retirement investment due to the retirement savings credit. Sadly, most didn't take me up on it.
I'm thinking that, given my exposure to stuff, that congress is losing much of its ability to "incentivise" people to do "good things" like save for retirement through tax incentives because taxes are becoming more and more of a black box. People can't alter their behavior to get the incentive, be it deduction or credit, if they don't know about it.
I'm still sad that as a full time student, I'm ineligible for the retirement savings credit. I think that it'd be a good thing to allow college students to invest and use it for the chance to positively affect behavior AFTER college. IE they already have that IRA, might as well keep investing into it. The biggest cliff I've seen is getting the account initially set up.