[D ] Whether all that attention has translated into sufficient action is another question. Governments in rich countries now accept that their pension and health-care promises will soon become unaffordable, and many of them have embarked on reforms, but so far only timidly. That is not surprising: politicians with an eye on the next election will hardly rush to introduce unpopular measures that may not bear fruit for years, perhaps decades.
[E ] The outline of the changes needed is clear. To avoid fiscameltdown, public pensions and health-care provision will have to be reined back severely and taxes may have to go up. By far the most effective method to restrain pension spending is to give people the opportunity to work longer, because it increases tax revenues and reduces spending on pensions at the same time. It may even keep them alive longer. John Rother, the AARPs head of policy and strategy, points to studies showing that other things being equal, people who remain at work have lower death rates than their retired peers.
[F] Younger people today mostly accept that they will have to work for longer and that their pensions will be less generous. Employers still need to be persuaded that older workers are worth holding on to. That may be because they have had plenty of younger ones to choose from, partly thanks to the post-war baby-boom and partly because over the past few decades many more women have entered the labour force, increasing employers choice. But the reservoir of women able and willing to take up paid work is running low, and the baby-boomers are going grey.
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