The global population ageing represents one of the most significant demographic events of recent decades. Population ageing is expected to accelerate, not only due to declining fertility rates, but also because older people are healthier and live longer.

The Living Conditions Department conducts research to understand the complex interplay between ageing, health, and pensions, and to identify effective policies to improve well-being and economic sustainability.

Given the public sector’s critical role in redistributing resources through the social security system - from workers to retirees and from the healthier population to the less active - dynamic microsimulation models are used to analyse the impact of this ageing process on the financial and social sustainability of various public policies, including pensions and health.

Through the analysis of administrative data and the design of surveys, the department examines individuals’ preferences, decision-making processes, and willingness to participate in pension plans, while also assessing the impact of pension policy changes on well-being and health.

The research also examines the levels and distribution of well-being among the ageing population across multiple dimensions - including income, consumption, health, and other key indicators - aiming to identify areas where social policies can promote a more active and healthy life for older adults.