A new study by the University of Paris-Sorbonne shows that disappearing pensions hurt both the economy and workers. By pushing older workers to remain in the labor force, the U.S. economy has taken jobs away from younger workers who could be more productive. Keep in mind this is not to suggest that older workers can’t be as productive as younger workers. Experience and knowledge go a long way. But when taken across the entire U.S. economy, older workers tend to be less productive on average, according to the study at the Sorbonne. Globally, the peak average age for workers in terms of their productivity tends to be about 43.
The drop in U.S. pensions also contributed to the rising gap between the rich and poor. That change has led to increased inequality, because low- and middle-class workers cannot afford pensions, whereas the wealthy can.