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Sets Canada's debate on old-age pension reform in the context of the current politics of debt. The system in place from the 1950s-1970s & its goals, accomplishments, & failures are reviewed. The new social, economic, & political conditions that challenge it today are discussed, as are the assumptions & models underlying two widely promoted alternatives: the conservative strategy of privatization & provision of income-tested benefits to low-income elderly, & the progressive emphasis on a redesign of the welfare state to allow for a more flexible model of retirement & economic life course. It is concluded that changes in morbidity, mortality, labor market structure, & the age distribution of risk have heterogenized the older population, requiring more than a single retirement option - a legitimate demand for a redesigned welfare state has resulted. A social investment strategy is recommended.
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