“That’s it, the whole thing in a nutshell. There are too many retirees for existing workers to adequately support them, and that’s an aggregate drain on savings. Savings fuel investment, so drained savings hurts investment. No investment, no jobs, no nothing — and everybody’s angry.”
Yes a good pension makes retiring better for the retiree. But where does the money come from? If the money is not saved by the individual, but comes from those still working (Social Security, government employees, most unions – pyramid schemes all) then the burden is shifted to those currently working and taxpayers. Productivity decreases, debt increases and everybody’s angry. In the US Detroit is a good/bad example. Chicago and Illinois are almost insolvent. California is on the brink.