The Inverting Pyramid
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About this ebook
Measures to enable a continued tradition of providing old age security will include
• raising retirement ages such that pensions are provided in the last 15 years of life, when work capacity traditionally diminishes
• encouraging immigration to help fill the declining work force
• rationalizing pension spending, putting priority on preventing old age poverty, and
• encouraging savings to help provide the more comfortable retirement that individuals have come to expect.
Some measures may be more appropriate in particular countries than others, yet undertaking all of them will likely require less drastic changes in any one of them. The specific choices will need to be discussed and agreed among each country’s own population, and be accompanied by enabling changes in pension policy, tax policy, financial markets policy, and labor policy.
The fundamental issue is that, with these changes, the important achievements of European social policy can withstand the demographic onslaught and continue to provide old age security for generations to come.
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