They aren’t losing their pensions and savings, nor are they getting a haircut (as many article like to say). Their government is robbing their pensions and savings. The person who spent a lifetime saving 100,000 euros might get to keep 8,000 if they were stupid enough to keep it in a bank. How nice is that?
Oh. If anyone thinks this same trick won’t be tried everywhere else when governments run out of cash, don’t kid yourselves. Our 401Ks, for example, are mighty tasty to a government in search of plunder.
Banks already are involved with the scheme. They've been strong-arming seniors into annuities to survive, with interest rates near-zero on savings. The banks make a profit selling the thing and the principal is gone when the retirees die.
Another scheme is the reverse mortgage. It has very large closing costs, and the amount that can be taken out isn't 100% of equity. What one takes out accrues interest, so it isn't long before all equity is eaten up.
It wouldn't be such a great step for the feds to decree that all fed-approved retirement savings plans were transferred to annuities from the federal government. POOF!! The feds own your savings.