The 32-year-old has yet to feature for a single minute since Jose Mourinho took charge in the summer, instead being made to train with the Under-21s side despite being on a salary of around £200,000 a week.
Schweinsteiger was named in the matchday squad for the first time this season for United's 1-1 draw with West Ham United on Sunday afternoon, however, leading to suggestions that Mourinho could be readying him for first-team action over the busy festive period.
Widespread reports suggest that the Portuguese is instead merely putting the German in the shop window in a desperate attempt to get him off the books in the New Year, but Hoeness believes the experienced midfielder should get every last penny out of the Red Devils before then calling time on his career.
"I would let [United] bleed until the last day and then say goodbye," he is quoted as saying by The Sun. "That's what this club deserves for what they've done to him. They should be punished. From what I have heard, Basti's on his way out of football.
"I know him well and I doubt he's still got the fire left in him for one final major challenge. After such a brilliant career, a player like him shouldn't see out his career in a place like America.
"For me, America simply isn't an alternative for a player of his calibre. As far as I know, he's committed to a massive farewell game at FC Bayern. I would do that but then I would retire."
Schweinsteiger, who spent more than two decades at Bayern prior to his Old Trafford switch in 2015, was more of a regular in his maiden campaign in English football as he was used 31 times in all competitions.