The macroeconomic implications of the longevity transition depend upon behavioral and
policy responses. Foreseeing longer lives, individuals might choose to work longer and
save more, or consume less per year in retirement, or extract more transfers from the
younger generation within the household or through public policies, or some combination
(Eggleston and Fuchs 2012; Poterba 2014). Developing countries have the opportunity to
establish sustainable institutions and avoid dysfunctional incentives (embedded in some