Policy Outcome: Sustainable Labour Force: Challenges Ahead
Higher longevity and low fertility rates jeopardize the sustainability of welfare systems and particularly of public pension schemes across Europe. There is now widespread recognition, not only amongst policy makers or politicians but also amongst the wider population, that current systems will not be able to ensure enough income for the increasing share of retired population. Nonetheless, most European systems have not adapted to the shifting demographics, with changes consisting mostly of minor increases to the statutory retirement age. These shifts in trends cannot be tackled purely from the welfare systems. Declining labour force participation rates trigger other dynamics beyond the decrease of the taxable population for pension schemes. The Focus Group addressed these issues and provided specific policy recommendations.
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