Trend Social security systems under pressure and being reformed

Summary

The report sees ageing, flexibilisation and digitalisation together straining social security and prompting adjustments such as the pension agreement and labour-market reform. In an ageing society where the workforce no longer grows, the ratio between people in work and people out of work shifts sharply. Pensions, state pension (AOW) benefits and care costs are large expenses, while the group of workers carrying them keeps shrinking. On top of this, the state and businesses face heavy spending on the energy transition, the circular economy, climate adaptation, housing construction and defence. Raising the state pension age can partly soften shortages if older employees stay available for work longer. The report holds that sustaining prosperity will require GDP growth to come mainly from higher productivity.