European countries, including the DIALOG countries, have faced a major de- graphic change and transition in the last thirty years. They are experiencing lo- term downward trends in fertility, leading to demographic ageing. Fertility rates are now below replacement level in nearly all countries. As a result, natural p- ulation growth rates are starting to decline, or population sizes are falling o- right. At the same time, the proportion of elderly dependants continues to grow while the working-age population declines in absolute and relative terms (see Kontula and Miettinen 2005). Moreover,...