When Older People Do Better Than Those of Working Age

This divergence between generations is in part a reflection of demographic shifts that have been brewing for years, as populations grow older and the wealthy postwar baby boomers in particular reach their golden years.

But it is also widening as a consequence of forces bearing down on the earnings of the young, creating a growing imbalance that threatens to undermine the promise that market economies will deliver rising living standards for successive generations. Younger workers are grappling with flat or falling pay, decreased job security and less-affordable housing, sapping the spending power that helps fuel the economy. As the elderly population increases, younger workers also face a rising bill for the extra tax dollars needed to fulfill past governments' promises to retirees.

... for some economists, coddling pensioners has left the working population shouldering a disproportionately large burden of postcrisis belt-tightening.

"It's a perfect storm of sudden increases in longevity, combined with the global financial crisis, combined with the greater voting power of older generations," said Liz Emerson, co-founder of the Intergenerational Foundation, a London-based think tank that argues the political clout of seniors--an age group with high voting turnout--has damaged the interests of the young.