That would just mean even lower returns on the investments as well. A sound market system can protect workers while minimizing government control. Workers can choose a major private investment manager from a list approved and regulated by the government. The list would include a wide range of major banks, insurance companies, brokerage firms, and other investment companies. These managers would then make the investments for the workers.
More sophisticated workers can exercise more direct control over the investments.
Workers could periodically switch investment managers. The entire system would be backed up by a safety net with the government guaranteeing a minimum retirement benefit in any event. Despite the recent stock market blues, a vast majority of Americans want a new Social Security system. They know the current program is headed for the financial cliffs. They also know it won't give them the retirement security they deserve.