The retirement portion could be easily phased out.

The problem with this is that the "boomers" are going to break the system long
before the phase out could occur. In fact we are still trying to add
entitlements to the system like expanded health care and drugs. The boomers
will be hitting the system in less than 10 years and most have been paying into
the system for 35 years. It isn't going to be easy to convince them all this
money went down a rathole and not expect a backlash.
I believe the government (polititians) will try to maintain the illusion of
solvency until the whole house of cards collapses. Bear in mind that the real
problem is we can't have 35% of the country "retired" and living off the other
65%. This effect will ripple down through the stock market and financial
institutions as boomers cash in 401ks and other investments, driving down
values, making pension plans fail. ERISA payments will just compound the
problems we will see when SS is upside down. The government will be left with
the option of massive taxation or abandoning promises made since the days of
FDR.
I see no indication that the polititians are looking at any kind of phase outs.
one party is adding to the entitlement burden while the other is cutting taxes.
(the exact opposite of logic) We are sitting here dumb fat and happy,
believing it will work.