For all the problems with the 401k and 403b and keogh, they are simply extremely attractive with our progressive tax system. And this will force people to continue dumping money into the system.

A ponzi scheme would only be a ponzi scheme if they eventually run out of that continuing input.

Assuming someone pulls in $250k. If that person dump $35k into the retirement funds, they escape the over 40% taxation on that $35k.

How many people are going to be in that over 40% bracket after retirement? Even if they are forced to withdraw from their 401k.

Even if that money makes ZERO return, that is still better than the reduction to 60 cents on the dollar post tax.