The consequences of declining birth rates have been evident for decades. Some countries took early action: While the myth of secure pensions was doing the rounds in France and Germany, other countries like Denmark and Switzerland were already reforming their pension systems. Now the late starters are struggling to catch up.

According to calculations by the United Nations, the number of people over 60 will rise from 670 million worldwide in 2002 to 2.3 billion by 2050, and their share of the world population will climb from 11 to 26 percent. This trend varies greatly from region to region. Although rapid population growth continues in some countries, populations in the industrialized nations of Europe and in Japan are shrinking.

While births are declining, the top end of the demographic pyramid is looking distinctly crowded. In the period from 1980 to 2000, life expectancy in most European countries lengthened by around five years. By 2020 life expectancy will be another three years higher. And these calculations don't even take into account expected medical advances, for example in stem-cell research and gene technology. Many experts believe that reaching an age of 120 is a viable possibility in the not-too-distant future. However, one consequence of longer lifetimes is that the elderly dependency rate - the ratio between the elderly and those who have to take care of them - will also rise in every country.

The general aging of the populations in industrial societies is straining their social security systems - especially in the area of pension insurance. In Europe the majority of these systems are financed on a pay-as-you-go basis, which means that pensions for the already-retired are paid for by those still working. But this way of doing things is breaking down because of the increasing number of elderly people. The EU forecasts that the percentage of pension expenditure in relation to the confederation's overall GDP will increase from the current 10.5 percent to 13 percent by 2030. One result of this is that the need for investment in private pensions will continue to grow - even in times of stagnating economic performance.

This make it all the more important for the economy to be flexible and resilient. Although rejuvenation has been a trend in companies for some years now, in the medium-term businesses will be unable to ignore the labor potential of older people. Just as the potential of older employees will be vital for companies in the future, women will also increasingly be seen as an essential resource. In addition, work could be better distributed - not only among individuals, but also over the various phases of life. Why, for example, should we work hardest during the years in which we're raising children, and postpone leisure time to the decades in which we might be doing nothing more than occasionally looking after our grandchildren?

In an interview with AllianzGroup.com News, Michael Heise, Chief Economist of the Allianz Group, discussed the study "Aims of Life - People in Germany". His conclusion: Politicians should encourage people to take on more responsibility for their own welfare, including in the areas of health and education.