Even in the present economy we're better off than many other nations. One set of expenses that will need to be contained is healthcare costs, especially through Federally-guaranteed programs that can/will bankrupt the Republic in another 30 years. That doesn't mean that there aren't fundamental problems with the economy—but we're alright, all things considered.
The loss of pensions hurts but the real problem IS GOING TO BE HEALTHCARE SPENDING FOR RETIREES. Unless Congress takes action to better regulate the costs of healthcare or changes the provisions of Medicare/Medicaid, the rest of us working-age people are hosed.