It's going to be shameful but it's going to be okay because it has happened before during the last industrial revolution so it's easy to go look at what's going to happen again.
Row houses, work houses, poor houses will takes the shape of vast ugly hangars furnished with small uncomfortable bunks and crowded mess halls where cheap food will be served against labor.
The resemblance to prisons or concentration camps will be obvious but they will just be industrial scaled homeless shelters and the inmates will not necessarily be tortured because
the goal of these "useless people storage" will be to get them out of the way of society, give thme something to do and just stall until they die. Laws will be passed to force officially recognized institutions to take care of the poor.
In actuality these rowhouses will be rife with abuse mainly of the dehumanizing neglect sort with unfair work and shitty food. The Classic. They will end up being abolished.
That being said, even 200 years ago, facilities of the poor-circuit weren't no-smile-zones and nothing short of death has ever stopped a man from cracking a joke with his buddies.
Furthermore if you manage to rebound your life and erase the stigma on you then you won't have to go back to the hardmode retirement home, just don't go anymore, the police won't arrest a socially acceptable individual on sight.

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