Social policies for reducing demographically-induced costs in social security

The demographically-induced increases in the cost of social-security systems (especially pension and health-insurance schemes) that will develop over the next few decades are briefly outlined and the available policy options for coping with them are discussed. Examples of the possible effect of various policies in the FRG are presented. The importance of anticipatory action is stressed, particularly for systems like pension schemes where an individual's rights are built up through contributions made over a long period and where abrupt action could lead to perceived severe inequities or even hardship.