Generational Equity and the Reformulation of Retirement

Starting from an examination of the essential components of the long established 'contract' between the generations, the analysis moves on to examine public policy responses to the ageing of populations. Observing an international inclination to panic at the growth of old age and to restrict expenditure on services to older people, the paper addresses practical questions of political economy within the generational contract. On the one hand cuts to pensions and services are seen not to be economically inevitable. On the other it is argued that modern retirement breaches the compact between the generations and will need to be reformulated, enabling more people to earn income well beyond current retirement ages.