The basic problem with welfare states at the current time is that we have a growing number of retirees from a large generation (baby boomers) and a shrinking number of new hands to work and pay taxes to support them (their children and grandchildren, whom they didn't have enough of - fertility rate in europe is something like 1.4-1.6 depending on sources. The same is true of the white part of america (no, shut up, go be offended elsewhere)), along with an ever expanding welfare state.
There is no quick fix to this under the current system. The options are to wait until the old folks die and a replacement-level generation is born and grow up, or to scrap the entire welfare system. And that is simply not going to happen, willingly. The only person who might have changed things was Ron Paul and we know how that went.
We are in this for the long haul.
What if you were to do as they have done in advanced cultures who are already suffering from a shrinking population?
The Japanese are investing in medial care robots, to look after their old people - seeing as the younger population are better at earning money doing clever things!
http://www.japantimes.co.jp/news/2013/06/19/national/robot-niche-expands-in-senior-care/
This could be technology and the capitalistic way of dealing with problems rather than the socialist way of just throwing tax money at welfare!