We are living in an era of major population changes. In Germany, issues related to this change are of particular importance as the country faces the transition of the last cohorts of the baby boomer generation out of the labour market within the next two decades. This will have reverberating effects on the old-age and economic dependency ratios: For every 100 individuals at working age, there will be more than 40 at retirement age. Policy experts call for a prolongation of working lives, more flexible (self-) employment arrangement after reaching retirement age, measures to strengthen reconciliation of work, care and family, enhancement of women’s access to the labour market and support of life-long learning, among others.
However, the last cohorts of the baby boomers will not only leave the labour market, but they will also witness higher life expectancy and be, on average, healthier than earlier cohorts. Even if this development has to be addressed as a major achievement of the modern welfare state, it also creates challenges for social policies, especially concerning the social security systems and private old-age provision. With increasing life expectancy, the numbers of patients with multimorbidity, cognitive decline and psychological diseases might rise. In the family nexus, new forms of family and cohabitation – which we have experienced in recent generations – will keep playing an important role in the future, influencing our lifestyle, educational success, health and income trajectories. Furthermore, there is a growing disparity with regard to life expectancy by educational attainment, socioeconomic status or lifestyles.
All the dynamics mentioned above directly relate to growing issues of social inequality in most European societies. Decision-makers in the policy arena have to consider the growing diversity and interrelationship of sociodemographic characteristics. We have to reform the social security systems – most importantly pensions and long-term care – for ageing populations. Politics need to create incentives for climate-friendly behaviour while being aware of population structure and its characteristics. Regional disparities have to be tackled and municipalities must be enabled to provide basic infrastructure and services, as well as create a flourishing community. And, especially these days, we should not forget the consequences of population change for our democratic polity. How can we design a society that is considered to be driven by fairness and social cohesion and which is more crisis-resilient? To address these queries, the authors envision an Einstein Center for Population Diversity that will bring together Berlin and worldwide experts.