This project focuses on the question whether increasing life expectancy is related to extending life in better health as bio-metric research in the US suggests. If this is also true for Europe, it will have great impact on the health and long-term care utilisation as well as on the retirement decision and the sustainability of social security systems. The impact of a higher level of healthiness will be analysed for the EU (15 - and for selected countries). Life expectancies and health status of the population will be shown and the life expectancy in good health, the life expectancy without disability and the life expectancy without severely disability will be calculated (WP 1). The next step focuses on the influence of better health on the demand of health and long-term care and past development (WP 2). Data basis are national sources and the European Community Household Panel. In a third WP time use data was used to show the effect of health status on retirement decisions. Based on the first three WP's: the health care utilisation, the development of long-term care and the development of social security expenditure was estimated and some modelling was carried out (WP 4 and 5). In the last WP, conclusions for political decisions were drawn up. DIW participate at all WP's and take the lead of WP 2 and - together with CPB-Netherlands - of WP 4. The project is funded by the European Commission.