All those trying to manage without a fixed income are more spartan than they likely need to be, fearing market downturns.
A smart government would sell them a fixed income with their current savings. They (the government)would then have the cash now rather than letting the children get a big inheritance. And with a fixed income coming in the seniors would spend more. 
Seniors are sitting on a mountain of cash that is going to get lost into a vast inheritance  black hole 20 years from now.
Assuming readers appreciate that when a fixed income is guaranteed, many retirees die young and the pension manager gets to keep the excess, rather than giving it to  the children.