The Economic Implications of Aging Societies: The Costs of Living Happily Ever After

The world is getting older and no one knows exactly what life will be like in tomorrow's older societies. But we do know that age dependency ratios - the ratio of retirees to workers - will be much higher than we see today. The implications of this trend are plain. The combined effects of fewer workers, more retirees and longer retirement periods threaten not only the sustainability of pension systems but also the broader economic prospects of many developed countries. This book describes current trends in birth rates, longevity and labor force participation and productivity, the cross-border flow of capital, the globalization of labor markets, the financial viability of social insurance programs, and the ways economic output is shared between working-age and retiree populations. Our most effective solution will likely be a multifaceted one: more workers, longer careers, higher productivity, and more global exchange and cooperation.

Table of Contents:
1. Introduction; 2. Population developments in a global context; 3. Pension options, motivations and choices; 4. Pension structures and the implications of aging; 5. Retirement systems and the economic costs of aging; 6. Beyond pensions to health care considerations; 7. Labor supply and living standards; 8. Too many wants or too few workers?; 9. Alternatives to finding more workers; 10. Aligning retirement policy with labor needs; 11. Funding pensions and securing retiree claims; 12. Macroeconomic policies for improved living standards; 13. Risks associated with alternative public policies; 14. Roadmap to the future.

About the Author :
Steven A. Nyce is a Senior Retirement Research Associate with the Research and Information Center of Watson Wyatt Worldwide in Washington, DC. Dr Nyce joined Watson Wyatt in 2000 upon completion of his PhD in economics from the University of Notre Dame. he has written numerous articles and spoken regularly at public and private forums on the impacts of demographic aging on the developed economies. His research also includes the study of behavioral aspects of private pensions and public and private retirement policy. Sylvester J. Schieber is Vice President, Research and Information Center, Watson Wyatt Worldwide in Washington, DC. Prior to joining Watson Wyatt in 1983, he served as the first research director at the Employee Benefit Research Institute in Washington, DC. Before that he served as the Deputy Director of the Office of Policy Analysis, U.S. Social Security Administration. Also at Social Security he served as the Deputy Research Director of the Universal Social Security Study, a congressionally mandated study that evaluated whether remaining federal and state and local government workers outside the system should be included. Dr Schieber has authored or edited ten books by himself or with colleagues. These include the seventh and eighth editions of the Fundamentals of Private Pensions. His 1999 book with John B. Shoven, The Real Deal: The History and Future of Social Security, received special recognition in the 2000 Paul A. Samuelson Prize competition for economic writing. Dr Schieber served as a senior advisor to the organizers of the Global Aging Initiative at the Center for Strategic and International Studies. He was appointed to the 1994-1996 Advisory Council on Social Security convened by the Bill Clinton Administration. He was appointed to a six-year term on the US Social Security Advisory Board in 1997 and reappointed for another term in 2003.

Review :
'... 'perhaps the most comprehensive analysis to date of the macroeconomic implications over the next few decades of current demographic trends in a wide range of countries.' The material is presented in a highly readable, informative, and non-partisan format that draws the reader inexorably through the maze of issues and their potential solutions.' The Journal of PEF