Ageing has two key components: there will relatively more elderly people and they will become older than before. An ageing population challenges society because the cost of social security will increase: more people will benefit, less people will pay taxes. Without changes, the public finances and private pension funds will become unsustainable.

CPB research focuses on three issues. First, what are the implications of ageing for public finances and how can the government respond? Second, the Netherlands is well known of its capital funded pension system, what are the strengths and weaknesses of this system in an ageing society? Finally, increased longevity has important implications for elderly workers, who are expected to postpone retirement. What does this imply for the labour market of elderly people?

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