I think the only missing part of this is that option, in particular, isn't taking into account earned value of money over time - like how much could I have now if I only was getting 5% on my return inflation adjusted. That is if I'm understanding it. Because folks that worked primarily in the 1970s - 1990s really would get the shaft.
I was all in favor of just outright doing away with SS after a certain age (or born after date). I would have been willing, up to about age 40-45, to GIVE my SS TAX back to the kitty so long as I get 100% of that SS withdrawal money back in my paycheck and no new taxes on that money that was designated for SS (so that % of your tax that is SS would become non-taxable income for investment!!) I think one can pretty much recoup that money with conservative investments over the next 20-25 years. I never did the actual math on that; but at some point, just having the SS TAX stop would allow one to retire with more money; because that money would be in private hands making money (like a 401K).
The debate against the no SS is that people don't have enough self control....ok...so make a law that says it has to go somewhere and cannot be pulled out until 65, but the individual gets a say on where the money is invested. It's not perfect due to the FED jacking with the economy, cyclic nature of stocks, bonds, gold, etc; but it's not quite the Ponzi scheme current SS is.