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g population are intricately intertwined with the macroeconomic performance of a society over time. At the macro level it is the current output that has to pay for the subsistence of the population, young or old, at working age or retired. The current output, however, depends in part on past savings and investment. In other words the work and savings of the present generation provide subsistence and employment for the present as well as for the future generation. The benefits of growing national income and increased productivity will not, however, be distributed equally among the old whose claim on the national income depends on their accumulated assets, including savings and pensions. An economy which distributes its assets and income unequally over its working age population carries such inequalities into old age, thus creating a differentiated group of old people. This has to be taken into account in the setting up of national pension plans in order to prevent hardship among those old people whose poverty when of working age prevented them from saving for their old age.

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