Sixteen or seventeen trillion in private savings is too much for the federal government, academics, and Wall Street investment firms to resist playing with.
Over time the money will be taken:
Step #1 is the conversion of 401K, IRA, and other savings plans to government accounts. You’ll have your own account with your own money. The only difference between the new accounts and the personal accounts you once controlled is a “guaranteed” return.
Step #2 is to limit withdrawals to an approved schedule. Of course this is for your own benefit to make sure the money lasts your lifetime.
Step #3 will be means testing of traditional social security. The government will look at your total savings. Those who have excess savings will not receive traditional social security payments. After all, it isn’t fair for the government defined “wealthy” to benefit from social security.
Step #4. Government appropriation of retirement accounts at the owner’s death. Just like social security benefits end at death, even if there is residual money in the savings account.
Step #5. Roll social security and individual accounts together. Means test all benefits.
All professional athletes who sign a million dollar contract should be made to put the first million in the S & P 500 until age 59. Then they can mandate withdrawals equal to life expectancy. If they end up broke as they often do they can drive a bus.