[C] Since then the debate has become less emotional, not least because a lot more is known about the subject. Books, conferences and research papers have multiplied. International organisations such as the OECD and the EU issue regular reports. Population ageing is on every agenda, from G8 economic conferences to NATO summits. The World Economic Forum plans to consider the future of pensions and health care at its prestigious Davos conference early next year. The media, including this newspaper, are giving the subject extensive coverage.
[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.
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