Retirement saving and the payout phase: How to get there and how to get the most of it (original) (raw)

Financial markets trend: ageing and pension system reform

2006

Ageing have prompted important changes in the structure of pension system with substantial differences across the most developed countries. Given that ageing populations are driving a growing need for private form of saving for retirement, the pension fund industry is like to exert an increasing influence in the financial markets. Much of the additional retirement related flows to capital markets will be intermediated by pension funds although their importance varies considerably across country. This work reviews recent change in the pension funds industry (updated at 2006) originated from pension system reform across countries as well as risk management practices, such as ALM; the paper also focus the potential implication of pension funds investments strategies on financial markets identifying the main gaps in the availability of financial instruments needed for pension funds. FIGURE 3 -POPULATION AGED 60 YEARS OR OLDER IN EU 15 (% of total population) 21 22 15 20 24 21 23 26 23 22 23 23 21 25 20 28

The Consequences of Population Aging on Private Pension Fund Saving and Asset Markets

1994

This paper examines the impact of the aging demographic structure of the U.S. on its funded private pension system. A 75-year outlook is produced for the pension system corresponding to the 75-year forecast of the Social Security system. The primary result is that the pension system will cease being a source of national saving in the third decade of the next century. The paper speculates about the impact this may have on asset prices.

The Impact of Aging on Financial Markets and the Economy: A Survey

SSRN Electronic Journal, 2004

All major industrial countries will experience significant population aging over the next several decades. In both academic circles and the business press it is widely believed that population aging will have important effects on financial markets because of its expected impact on saving rates and the demand for investment funds. This paper reviews the literature on the macroeconomic and asset market effects of population aging, focusing on four related issues: (a) The impact of population age structure on aggregate household saving; (b) The effect of population aging on investment demand; (c) Evidence on the influence of population age structure on financial market asset prices and returns; and (d) Effects of globalization on our interpretation of the impact of demographic change.

Capital Markets in the Long Term: Demography, Economic Development and Funded Pension Systems

Price stability and macroeconomic volatility in the euro area-the positive supply-side effects of credible and predictable monetray policy Klaus Masuch (European Central Bank) 9 Capital markets and demography (a survey of financial experts) Michael Schröder (ZEW-Centre for European economic research), Martin Schüler (ZEW-Centre for European economic research) 45 The effects of demographic changes on aggregate savings: some implications from the life cycle model

Financial Innovation for an Aging World

2006

Over the last half-century, around the world, many nations have seen plummeting fertility rates and mounting life expectancies. These two factors are the engine behind unprecedented global aging. In this paper, we explore how the demographic transition may influence financial markets and, in turn, how financial market innovation might help resolve concerns flowing from global aging trends. We first provide context by reviewing the economics, finance, and insurance-related literature on how global aging patterns may influence capital markets. We then turn to insurance markets, and discuss a range of products and policies, including both retail and wholesale financial offerings for various forms of life annuities, long-term care benefits, reverse mortgages, securitization of longevity risk, inflation-protected assets, reinsurance, guarantees, derivative contracts on residential property price indices, mortality swaps and longevity derivative contracts. We also indicate how new public-private partnerships might be beneficial in enhancing the future environment for old-age risk management.

Managing the demographic risk of pension systems

2016

Demographic changes observed at present on the European markets strongly determine the sustainability of pension systems. The most important changes in this context include: increase of life expectancy, decline of fertility rate, ageing of societies, and migration flows. All the above trends pose a major risk, mostly for public pension systems that finance the distribution of retirement benefits from mandatory contributions collected from earners in the working-age population. Pension policies should be designed to minimize the demographic risk and limit the risk of old-age poverty. The risk of longevity, associated with the steady increase of life expectancy rates, is another important aspect to be managed by all institutions involved in effective distribution of pension benefits, be it from the base part of the pension fund or any supplementary funds. This paper aims to emphasize the significance of demographic risk in a pension system, identify the types of demographic risk and t...

Retirement provision in scary markets

2007

A catalogue record for this book is available from the British Library Library of Congress Cataloguing-in-Publication Data Retirement provision in scary markets / [edited by] Hazel Bateman. p. cm. Retirement provision in scary markets : introduction / Hazel Bateman-Who's afraid of the big bad bear? or, why investment in equities for retirement is not scary and why investing without equities is scary / Ronald Bewley, Nick Ingram, Veronica Livera and Sheridan Thompson-Assessing the risks in global fixed interest portfolios / Geoffrey Brianton-The role of index funds in retirement asset allocation / David R. Gallagher-Retirement wealth and lifetime earnings variability /