This paper introduces the debate on the relation between financial markets and welfare states in the provision of social security. Reviewing recent trends in the areas of old-age provision, housing, credit/debt and social impact investing, it shows the ambivalent relationships constituting the welfare-finance nexus: financial markets can both guarantee and restrict (traditional) social policy and financial products can act both as a complement and as a substitute for publically-provided social security; moreover, while in some cases intended to solve social problems, financialisation also creates new problems and requires new social policies. As a starting point for a comparative investigation of the welfare-finance nexus, the paper concludes on the political coalitions underpinning this nexus in the case of pension reform.
