It should not be replaced by a state-level program it should be replaced by individual retirement accounts.
State-level socialism is still socialism
Plus people move from state to state. State-level creates too many complications.
I am not much on forced savings myself, and being not nearly old enough to get SS before it collapses I am completely for personal accounts. As a compromise I think you could set up a govt sponsored retirement system that would avoid being overly coercive like it is now, as well as avoiding the SS ponzi scheme setup.
Every person in America would get one, either thru their bank or with the SSA like it is now. The govt style SS with paycheck withholdings would be the default or you could opt out to do your own thing, or even do both. You could also have other IRA’s but one would be permanent.
Another thing is that any retirement deferred plan with any entity couldn’t be loaned out and must be 100% funded and segregated.
Most people already have IRAs or 401Ks.
Easy to say for the young who doesn't have a very big investment in the current system. A state run system sounds a bit too risky for those of who have already paid into SS all their lives and are now expecting their measly SS retirement once we've retired.
If the current system remains fully funded until everyone who has paid into it fully finally dies off then I don't have a problem with another risky state run ponzi scheme to replace the current federal ponzi scheme we currently have.
You are absolutely correct.