Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions Proposal for the Joint Report on Social Protection and Social Inclusion 2007
Date: 2007-01-19
Institutions: European Commission
Subjects: economic and social cohesion, pension scheme, poverty, report, social integration, social policy, social security

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 19.1.2007 
COM(2007) 13 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Proposal for the Joint Report on Social Protection and Social Inclusion 2007 

EN 

   EN 

 
 
 
  
KEY MESSAGES 

For the first time Member States have submitted integrated National Reports on strategies for 
social  inclusion,  pensions,  healthcare  and  long-term  care.1  They  have  done  so  against  the 
background  of  demographic  ageing  and  intensified  globalisation.  They  all  face  continuing 
challenges of exclusion and inequality and of a need to modernise social protection systems. 
Starting points differ between Member States, but the following key messages emerge clearly 
from the analysis of their reports:  

•  Member States have responded to the Spring 2006 European Council challenge to reduce 
child  poverty,  with  clear  commitments  to  breaking  the  cycle  of  deprivation.  This  will 
contribute  to  stronger  and  more  sustainable  social  cohesion.  Ensuring  access  to  quality 
education and training for all, focussing especially on pre-schooling and on tackling early 
school leaving is vital. The situation of immigrants and ethnic minorities needs particular 
attention.  

•  Active inclusion emerges as a powerful means of promoting the social and labour market 
integration  of  the  most  disadvantaged.  Increased  conditionality  in  accessing  benefits  is  a 
major  component,  but  this  must  not  push  those  unable  to  work  further  into  social 
exclusion.  While  most  Member  States  champion  a  balanced  approach  combining 
personalised  labour  market  support  and  accessible,  high-quality  social  services,  more 
attention needs to be given to ensuring adequate levels of minimum income. 

•  In their first European plans on healthcare and long-term care, Member States identify as a 
priority  the  need  to:  ensure  equal  access  for  all;  reduce  health  inequalities  in  outcomes; 
guarantee safe and high-quality care; and manage the introduction of new technology for 
health  and  independent  living.  More  rational  use  of  resources  is  an  essential  factor  in 
rendering healthcare systems sustainable and maintaining high quality. But some countries 
may  need  to  expand  their  financial  and  human  resources  to  ensure  adequate  coverage  of 
the  whole  population.  Improved  coordination,  promotion  of  healthy  life  styles  and 
prevention could be win-win strategies, contributing both to improved health status and to 
reduced expenditure growth. 

•  In most Member States long-term care needs to be expanded and put on a sound financial 
footing. Stronger coordination between healthcare and social services, support for informal 
carers and exploiting new technology can help people to stay as long as possible in their 
own home. 

•  Many countries are adapting pension systems to increases in life expectancy and creating a 
transparent  relationship  between  contributions  and  benefits.  Older  people  often  face  a 
higher  poverty  risk  than  the  general  population.  Reforms  aim  at  achieving  adequate  and 
sustainable  pension  systems..  Ageing  means  that  pension  adequacy  increasingly  depends 
on  more  people  working  –  and  working  longer.  It is therefore vital that older workers in 
particular  have  the  opportunity  to  do  so.  The  effects  of  reforms  on  adequacy  need  close 
monitoring.  

1 

http://ec.europa.eu/employment_social/social_inclusion/naps_en.htm 

EN 

2 

   EN 

 
                                                 
•  Despite  current  reforms,  ageing  will  increase  expenditure  on  pensions,  health  and  long-
term  care  by  four  percentage  points  of  GDP  by  2050.  The  long-term  sustainability  of 
public finances is still at risk. A recent Commission report2 showed that six Member States 
face a high risk, ten a medium risk and nine a low risk. Coping with this is a key policy 
challenge  and  requires  a  three-pronged  strategy  to  reduce  public  debt,  raise  employment 
and  reform  social  protection  systems.  The  sustainability  report  also  considers  the  risk  of 
inadequate  pensions  which  may  result  in  unforeseen  pressure  for  ad  hoc  increases  of 
pensions  or  higher  demand  for  other  benefits.  Thus  the  issues  of  pension  adequacy, 
sustainability and modernisation need to be considered jointly. 

•  Member  States  are  taking  more  account  of  linkages  between  social,  economic  and 
employment  policies  at  national  level,  in  particular  through  pension  reforms  reducing 
access  to  early  retirement  schemes  and  increasing  incentives  and  opportunities  to  work 
longer,  resulting  in  increased  employment  rates  of  older  workers.  Building  on  this 
interaction in implementing the National Reform Programmes for growth and jobs3 and the 
strategies for social protection and social inclusion will help deliver results.  

•  The  governance  of  EU  and  national  social  policies  is  being  strengthened.  Stakeholders, 
including  the  people  directly  affected,  are  increasingly  involved  in  preparing  social 
reforms. But the quality of the involvement could be improved. Stakeholders' role should 
be  extended  to  implementation  and  follow-up.  Interaction  should  be  reinforced  between 
national and EU policy levels and regional and local levels – where implementation largely 
takes  place.  Across  all  strands  of  European  cooperation  there  is  much  scope  for  mutual 
learning. 

1. 

INTRODUCTION 

The integrated Open Method of Coordination (OMC) introduced in 20064 is strengthening EU 
capacity to support Member States in their drive for greater social cohesion in Europe. This is 
starting to create more impact on the ground, making the EU attachment to social values more 
visible  to  European  citizens.  The  OMC  is  helping  to  deepen  mutual  learning  and  to  widen 
involvement of stakeholders at national and European levels. It has increased awareness of the 
multi-dimensional  nature  of  exclusion  and  poverty  and  forged  a  shared  approach  to  social 
protection reforms based on the principles of accessibility, adequacy, quality, modernisation 
and sustainability. For the first time, healthcare and long-term care are addressed showing that 
these  areas  are  well  suited  for  policy  exchange.  The  national  reports  illustrate  how  joint 
consideration  of  all  the  objectives  improves  policy  effectiveness  and  the  quality  of  public 
spending.  The  new  working  methods  of  the  OMC  are  starting  to  bear  fruit,  though  further 
efforts at EU and national levels are required to make full use of its potential.  

2 
3 
4 

COM (2006) 574 final. 
Latest Annual Progress Report: COM(2006) 816 
Common objectives: http://ec.europa.eu/employment_social/social_inclusion/objectives_en.htm 

EN 

3 

   EN 

 
                                                 
2. 

OVERARCHING  ISSUES  FOR  SOCIAL  PROTECTION  AND  SOCIAL 
INCLUSION POLICIES 

Greater social cohesion 

Recent  developments  are  encouraging:  reforms  have  been  carried  out  or  are  under  way  in 
practically  all  Member  States  to  make  systems  more  fiscally  and  socially  sustainable  and 
more  responsive  to  people’s  evolving  needs.  There  is  strong  convergence  towards  active 
inclusion, recognising that people’s right to play an active role in society has to be supported. 
On pension reform, there is a will to progress both on adequacy and sustainability. Improving 
accessibility, quality and sustainability emerges as the central aim of healthcare and long-term 
care strategies. 

As  reflected  in  the  OMC  objectives,  promoting  the  equality  between  men  and  women  is  an 
essential element in addressing these issues. Overall, Member States are incorporating gender 
concerns more effectively and data are more often broken down by sex. Some are pioneers in 
applying  gender  mainstreaming  systematically.  But  there  is  still  considerable  room  for 
ensuring  that  policy  measures  are  better  informed  by  gender  considerations  across  all  three 
strands of cooperation.  

Interaction with Jobs and Growth  

Member  States  acknowledge  more  clearly  that  economic  and  labour  market  reforms  must 
contribute  to  strengthening  social  cohesion  and  social  policies  must  support  economic  and 
employment  growth.  Active  inclusion  policies  can  increase  labour  supply  and  strengthen 
society’s cohesiveness. Increasing child well-being will help more people to develop their full 
potential and contribute fully to society and to the economy. Ongoing pension and healthcare 
reforms  have  a  clear  effect  both  on  sustainability  of  public  finances  and  on  labour  market 
behaviour.  Action  on  healthcare  improves  quality  of  life  and  productivity  and  helps  to 
maintain financial sustainability.  

Member States nevertheless recognise that healthy economic growth and job creation do not 
automatically  lead  to  reduced  income  inequalities,  in-work  poverty  or  regional  disparities. 
Some  National  Reform  Programmes  also  show  a  stronger  commitment  to  the  most 
disadvantaged  in  society  by,  for  example,  addressing  labour  market  segmentation  and 
precariousness,  and  helping  poor  households  benefit  more  from  employment  growth. 
Measures  to  ensure  the  sustainability  of  public  finances  are  accompanied  by  provisions  to 
protect  the  most  vulnerable  groups.  Strengthened  and  more  visible  interaction  is  required  at 
European and national levels. 

Governance 

Civil  society  and  social  partners  are  increasingly  involved  in  the  preparation  of  national 
strategies and modernisation of social protection. Pension reforms enhance transparency and 
individuals' understanding of their own position. Still, there is scope for further improving the 
quality  of  the  involvement,  not  least  in  implementation  and  follow-up  phases.  Coordination 
between European, national, regional and local levels needs to be stepped up. The importance 

EN 

4 

   EN 

 
of  effective  monitoring  and  evaluation  is  now  generally  acknowledged,  but  few  details  are 
given  about  the  precise  arrangements  envisaged.  There  is  some  increase  in  the  use  of 
indicators and targets and national strategies increasingly allocate resources and responsibility 
to  measures  tailored  to  the  targets  and  objectives,  but  this  is  still  not  done  systematically. 
There  is  better  co-ordination  between  the  implementation  of  social  inclusion  and  healthcare 
policies  and  the  use  of  the  Structural  Funds,  notably  the  European  Social  Fund,  but  its 
visibility in this area could be improved.  

3. 

KEY CHALLENGES IN THE DIFFERENT STRANDS OF OMC WORK  

3.1 

Fighting poverty and exclusion 

Member States' Reports are more strategic than in previous years, focusing on a more limited 
set  of  priorities.  But  they  continue  to  recognise  the  multidimensional  nature  of  exclusion, 
tackling their priority issues from many angles.  

Breaking the transmission of poverty from one generation to the next 

Children have a higher-than-average risk of poverty in most Member States. In some, almost 
every third child is at risk. Living in a lone-parent or jobless household further compounds the 
risk. This threatens social cohesion and sustainable development. Deprived children are less 
likely than their peers to do well in school, stay out of the criminal justice system, enjoy good 
health, and integrate into the labour market and society.  

The March 2006 European Council asked Member States "to take necessary steps to rapidly 
and significantly reduce child poverty, giving all children equal opportunities, regardless of 
their social background". The vast majority of Member States prioritised the need to develop 
an  integrated  and  long-term  approach  to  preventing  and  addressing  poverty  and  exclusion 
among children. 

Member  States  approach  the  issue  with  a  mix  of  policies  addressing  different  angles  of  the 
problem: increasing family income; improving access to services, including decent housing; 
or protecting children’s rights. Member States tend to target the most disadvantaged children 
and families within a broader universal approach. 

Two aspects stand out: equal opportunities with respect to education, including pre-school and 
adult  education,  and  promoting  parents'  labour  market  participation.  Reconciliation  of  work 
and family life is being facilitated through improved access to quality child care and flexible 
working  arrangements.  This  raises  also  the  question  of  promoting  a  more  equal  sharing  of 
domestic work and care responsibilities.  

On average, 15% of students leave school early, but in some countries more than a third of 
young  people  are  affected.  Tackling  early  school  leaving  and  strengthening  young  people's 
qualifications  reduces  the  risk  of  social  exclusion  and  improves  labour  market  prospects. 
Some Member States have set specific targets and are introducing preventative measures (pre-
primary education, guidance and counselling, tutoring, grants) and compensatory actions (e.g. 

EN 

5 

   EN 

 
second-chance schools). Developing these into comprehensive strategies will help to achieve 
significant results.  

In all Member States, youth unemployment, especially among people of immigrant origin, is 
twice  as  high  as  the  overall  rate  (18.7%  for  EU-25  in  2004).  Young  people  often  find 
themselves  in  a  vicious  circle  of  "low  pay  -  no  pay".  Many  Member  States  are  expanding 
apprenticeships,  providing  individualised  support  or  active  alternatives  after  short  spells  of 
unemployment,  focusing  on  socially  deprived  areas  or  improving  access  to  mainstream 
measures. 

Promoting active inclusion 

Quality jobs are a sustainable way out of poverty and social exclusion, strengthening future 
employment  prospects,  human  and  social  capital.  Healthy  and  sound  working  conditions 
allow more people to work and to stay in work longer. 

Member  States  are  increasingly  focusing  on  "active  inclusion"5  to  strengthen  social 
integration. There is a clear trend towards making benefits more strictly conditional on active 
availability  for  work  and  improving  incentives  through  tax  and  benefit  reforms.  Some 
Member States show how conditionality can be successfully combined with gradual tapering 
off of benefits on re-entry to the labour market and with tax credits for low-paid jobs to enable 
the  labour  market  participation  of  disadvantaged  people.  Reinforced  active  labour  market 
policies,  opportunities  to  upgrade  skills,  including  IT,  efforts  to  address  educational 
disadvantage and appropriate counselling are also vital elements in a balanced policy mix for 
active  inclusion.  Importantly,  to  ensure  that  strengthened  conditionality  does  not  weaken 
support for those who are unable to work some Member States have set out to improve the 
coverage  of  benefits.  But  the  need  to  guarantee  adequate  minimum  income  levels  receives 
insufficient attention in many strategies.  

Economic and employment growth will not of itself bring on board people who are furthest 
from  the  labour  market.  Some  Member  States  have  put  in  place  policies  such  as  in-work 
support for job retention and advancement, on-the-job training and a rise in minimum wages 
to ensure that work pays. The social economy is a vital source of jobs, including for people 
with poor qualifications or reduced work capacity, and provides social services not met by the 
market  economy.  Anti-discrimination  measures,  action  to  combat  financial  exclusion  and 
over-indebtedness, promotion of entrepreneurship and adaptability, labour law in conjunction 
with social dialogue and raising awareness of the benefits of labour market inclusiveness are 
also crucial elements. 

Labour market integration often needs to be joined up with a range of other services. Some 
Member  States  are  developing  a  more  structural  approach  to  housing  exclusion  and 
homelessness, looking at prevention and housing quality rather than mainly rough sleeping. 
Reconciling the need to ensure universal access to quality services with cost constraints will 
be a key challenge. 

5 

For in-depth exploration of the concept: COM(2006) 44 final 

EN 

6 

   EN 

 
                                                 
The  European  Council  has  identified  disabled  people  as  one  priority  category  for  increased 
labour  market  participation.  Some  Member  States  are  facilitating  access  of  physically 
disabled  people  to  the  labour  market,  while  others  are  addressing  the  inclusion  issue  more 
broadly:  mainstreaming  of  policies,  independent  living,  and  better  access  to  quality  social 
services. But less attention is devoted to mental illness and disability.  

Several Member States  are  adopting a more holistic approach to the integration of migrants 
and  the  social  inclusion  of  ethnic  minorities,  also  singled  out  as  priority  categories.  This 
involves  addressing  educational  disadvantages  and  developing  language  skills,  but  also 
fighting discrimination and promoting participation in civic life more broadly.  

Reinforcing  the  social  inclusion  of  disadvantaged  people  with  a  view  to  their  sustainable 
integration in employment is now a specific ESF priority. Actions can be supported under all 
ESF priorities for 2007-2013 and plans do give stronger visibility to the Structural Funds. The 
ERDF  will  contribute  to  the  improvement  of  infrastructure  related  to  social  inclusion  and 
fighting urban deprivation. 

3.2 

Healthcare and long-term care 

In this first year of coordination, the reports document striking differences in health outcomes 
among and within Member States. Life expectancy varies between countries from 65.7 to 77.9 
years for men and from 75.9 to 82.5 for women. Significant divergences by socio-economic 
status can also be found within many countries. These outcomes are affected by many factors, 
including living and working conditions. Member States are trying to reduce these differences 
by improving prevention and health education as well as access to health care. 

(Unequal) access to healthcare and long-term care 

All countries are strongly committed to ensuring access to adequate healthcare and long-term 
care.  However,  this  does  not  necessarily  translate  into  universal  access  and  significant 
inequities remain. Out-of-pocket payments have consistently increased due to the exclusion 
of  certain  types  of  care  from  the  benefits  package  and  to  rises  in  co-payments  to  increase 
revenue and reduce excess consumption. To avoid barriers to access for the most vulnerable 
groups Member States introduce exemptions, pre-payments and expenditure ceilings.  

The distribution of care is sometimes uneven. Regional disparities in provision result not only 
from geography but also from institutional features. While allowing services to adapt to local 
circumstances,  decentralisation  has  also  led  to  varying  treatment  coverage  and  practices. 
Funding capacity may also differ between regions. EU structural funds support improvements 
in health infrastructure to reduce such differences. 

There is a need to develop long term care systems to meet rising demand. Current provision 
is  often  insufficient,  resulting  in  high  personal  costs  and  long  waiting  times.  The  changing 
structure  of  families,  increased  geographical  mobility  and  increased  female  labour  market 
participation require more formalised care for the elderly and disabled. There is a consensus 
on  giving  priority  to  home  care  services  and  introducing  new  technology  (e.g.  independent 
living  systems)  which  can  help  to  enable  people  to  live  in  their  own  home  for  as  long  as 
possible.  Member  States  also  stress  the  importance  of  rehabilitation,  helping  dependents 

EN 

7 

   EN 

 
return  to  an  active  life.  There  is  growing  recognition  of  the  need  to  create  a  solid  basis  for 
financing long-term care and some Member States are moving in this direction. 

Improving quality through standards, evidence-based medicine and integrated care 

Member States use a mix of tools to achieve and maintain high quality care across the system. 
These  include:  quality  standards,  e.g.  minimum  structural  and  procedural  requirements  for 
providers, accreditation or certification of providers, and quality monitoring systems based on 
reporting exercises, and inspections. Health care professionals are encouraged to use centrally 
evaluated and accessible clinical guidelines based upon the best available evidence. National 
health technology assessment agencies have been established and are cooperating at EU level 
(EUnet-HTA).  They  help  to  ensure  that  new  interventions  are  effective,  safe  and  cost-
effective.  

To enhance system responsiveness and patient satisfaction, a more patient-centred pattern of 
care  is  developing.  This  includes  tailor-made  services  (notably  within  long-term  care)  and 
ensuring  patients'  rights,  choice,  involvement  in  decision-making  and  feedback  through 
patient surveys.  

Member  States  are  aiming  at  better  coordination  between  primary,  outpatient  and  inpatient 
secondary and tertiary care and between medical, nursing, social and palliative care. eHealth 
can help. This is expected to lead to better, more efficient patient flows through the system, 
reduce inappropriate interventions, favour independent living and increase patient satisfaction 
and safety.  

Promotion  and  prevention  programmes  are  being  implemented  to  tackle  non-communicable 
diseases  and  health 
(e.g.  cancer,  cardiovascular  diseases,  vaccination 
programmes).  

inequalities 

Achieving financial and long term sustainability  

Sustainability  of  health  and  long  term  care  has  financial  and  human  resource  aspects. 
Resources  are  significant  though  there  are  striking  differences  in  expenditure  (between  5% 
and  11%  of  GDP  in  2003)  and  personnel  employed  (between  3%  and  10%  of  working  age 
population).  

The  need  to  control  costs  growing  substantially  faster  than  GDP  clearly  emerges  from  the 
reports.  The  main  pressures  arise  from  new  technologies,  price  trends,  rising  patient 
expectations and in future, from an ageing population. A key challenge is to allow everyone to 
benefit  from  medical  progress  quickly  and  equitably.  Most  Member  States  are  promoting  a 
more rational use of resources through: e.g. overall caps on expenditure, co-payments and the 
use  of  generic  medicines,  staff  guidelines  and  health  technology  assessments.  To  promote 
efficiency, some Member States are separating the provision and funding roles and fostering 
competition  between  health  service  providers.  Private  expenditure  now  stands  at  26%  on 
average  of  total  healthcare  expenditure,  due  to  the  implementation  of  cost-containment 
policies  and  to  increased  demand,  driven  by  higher  per  capita  income.  Member  States 
accelerate healthcare restructuring, often challenging entrenched interests, through referral 
systems,  strengthening  primary  care  and  its  link  with  the  territory,  reducing  the  number  of 

EN 

8 

   EN 

 
hospital  beds  and  increasing  day  case  surgery,  and  rationalising  specialised  care  by 
concentrating it in a few centres of excellence.  

The  expected  increase  in  care  consumption  represents  a  major  area  of  employment  growth. 
There  is  however  a  general  surplus  of  specialists  and  lack  of  generalists  and  nurses.  High 
demand for staff in some countries is also draining medical resources from others, underlining 
the need for a common approach. There is a need for measures to increase the retention and 
supply  of  medical  staff  in  the  long  run.  Also  for  long-term  care,  there  are  shortages  in  the 
workforce. Informal carers require training, peer supervision, counselling and respite care and 
the possibility to reconcile family care and paid employment  

With  these  varying  situations,  specific  challenges  for  Member  States  differ  greatly.  Some 
need to devote more resources to healthcare and long-term care to ensure adequate coverage 
while improving efficiency, whereas in others efficiency itself will be the key to maintaining 
sustainable systems.  

The search for a win-win strategy 

the 

inter-linkage  between  access,  quality  and  financial 
Member  States  recognise 
sustainability:  policies  to  broaden  access  have  to  be  reconciled  with  improved  financial 
sustainability  and  long  term  sustainability  has  to  meet  the  need  of  high  quality  care  for  all. 
There  are  trade-offs  as  well  as  synergies  between  different  policies.  Making  trade-offs 
transparent  and  developing  synergies  helps  to  secure  adequate  social  protection  against 
healthcare and long-term care risks. Promoting healthy and active life styles, health and safety 
at work and more preventive care and taking account of health concerns in all policies is seen 
as a win-win strategy. Improving coordination, both  between types of care and between the 
different  levels  of  competence  (national,  regional,  local),  and  greater  use  of  evidence-based 
medicine and technology assessment can also improve the quality of care and patient safety 
and help control expenditure.  

3.3 

Adequate and sustainable pensions 

Reporting  on  pensions  already  took  place  in  2006.  The  comprehensive  synthesis  report  on 
adequate and sustainable pensions6 makes it clear that reform strategies need to consider the 
synergies  and  trade-offs  between  the  broad  objectives  of  adequacy,  sustainability  and 
modernisation.  General  structural  reforms  have  taken  place  in  most  countries  in  the  past 
decade and continued in some Member States in 2006. They build on a life-cycle approach by 
strengthening the link between contributions and benefits and managing increasing longevity 
and  on  active  ageing  strategies  by  reducing  access  to  early  retirement  schemes  and 
strengthening incentives to work longer. They must be matched by progress in opening labour 
markets for older workers. To guarantee both adequacy and sustainability of pension systems, 
more people need to work and to work longer. Continued rises in employment rates of older 
workers are encouraging but no reason for complacency.  

There  is  a  clear  recognition  that  sustainability  and  adequacy  questions  go  hand  in  hand. 
Unsustainable  pension  systems  put  pensions  at  risk  and  conversely  inadequate  pensions 
generate  unforeseen  demands  to  avoid  pensioner  poverty.  Theoretical  replacement  rates, 

6 

SEC(2006)304 of 27/02/2006 

EN 

9 

   EN 

 
                                                 
showing  how  a  typical  worker’s  pension  would  vary  up  to  2050,  indicate  drops  in  most 
countries  at  a  given  retirement  age,  notably  in  those  which  have  enacted  comprehensive 
reforms  (and  improved  sustainability).  Member  States  are  projecting  to  compensate  for  this 
decline  by  extending  working  lives  or  increasing  supplementary  pension  savings.  For  those 
countries  that  count  on  supplementary  pension  provision,  securing  private  pensions  and 
extending coverage remain essential. 

Work  in  2006  focused  on  specific  issues,  such  as  the  higher  poverty  risk  of  older  women, 
minimum pensions or minimum income within social assistance provisions. Widely differing 
provisions exist, with some countries having improved coverage considerably in recent years, 
while  in  others  reliance  on  minimum  pensions  is  declining  as  a  result  of  the  maturing  of 
earnings related pensions and higher employment rates. Member States need to consider the 
future  adjustments,  including  indexation  of  such  benefits,  in  particular  to  ensure  that 
recipients  do  not  fall  too  far  behind  the  overall  wage  level,  while  maintaining  strong 
incentives for working longer and saving. 

Another  focus  has  been  flexible  arrangements towards  the  end  of  working  life.  Appropriate 
financial incentives for working longer are crucial. The effects of such incentives may vary at 
different times regarding the standard retirement age and for different levels of earnings. Such 
systems  tend  to  be  complicated  and  it  is  important  to  promote  transparency  and  a  better 
understanding for the individuals. 

EN 

10 

   EN