10 This daunting problem has no easy solution; in particular, proposals that include modifications of benefits schedules must take into account that accrued pension benefits of state and local workers in many jurisdictions are accorded strong legal protection, including, in some states, constitutional protection. 11 In addition to pensions, states will have to address the burgeoning cost of retiree health benefits.
Human capital investment is key not only to boosting productivity but also to tackling inequality and promoting social mobility, enhancing social capital and maintaining social cohesion. Adults with low levels of education have a higher likelihood of reporting poor health and a lower participation in community groups and organizations.