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Ageing and saving

Author

Listed:
  • Richard Disney

    (Institute for Fiscal Studies and University of Nottingham)

Abstract
The issue of ageing and saving has two distinct facets. On the one hand, there is the individual issue. Each of us is getting older and wants to make sure that our savings plans are appropriate. I term this the ‘microeconomic’ aspect of saving and ageing. At the same time, OECD economies are themselves ageing: people are living longer, the baby-boom generation, born after 1945, is passing through to middle age and, in some countries, fertility rates are below replacement levels. I term this the ‘macroeconomic’ aspect of ageing, and it will affect these economies in almost all dimensions: in savings and investment rates, in the growth rates of productivity, output and public spending, in wage structure, educational attainment and labour supply (Disney, 1996). And, of course, there are links between the microeconomic and macroeconomic facets of ageing: for example, as a country ages, with more elderly dependants relative to workers, it becomes harder to sustain the social security pension without higher taxes. In turn, a prospective decline in the social security pension may cause people to revise their individual or household saving and retirement strategies.

Suggested Citation

  • Richard Disney, 1996. "Ageing and saving," Fiscal Studies, Institute for Fiscal Studies, vol. 17(2), pages 83-101, May.
    • Handle: RePEc:ifs:fistud:v:17:y:1996:i:2:p:83-101
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    File URL: http://www.ifs.org.uk/fs/articles/fsdisney.pdf
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    References listed on IDEAS

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    19. repec:bla:econom:v:63:y:1996:i:250:p:213-38 is not listed on IDEAS
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    Cited by:

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    2. Bell, William Paul, 2005. "An evaluation of policies to reduce fiscal pressure induced by population ageing in Australia," MPRA Paper 38286, University Library of Munich, Germany.
    3. Börsch-Supan, Axel, 2004. "Mind the gap : the effectiveness of incentives to boost retirement saving in Europe," Papers 07-27, Sonderforschungsbreich 504.
    4. Zapji Ymélé Aimé Philombe, 2022. "Interest Charges and the “Said†Ageing-related Expenditures: A Study of OECD Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 15(3), pages 7-23, December.
    5. Whitehouse, Edward, 2000. "How Poor are the Old? A Survey of Evidence from 44 Countries," MPRA Paper 14177, University Library of Munich, Germany.
    6. Vaittinen, Risto & Vanne, Reijo, 2020. "Finland’s slow recovery from the financial crisis: A demographic explanation," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    7. Johansson, Per-Olov, 2000. "Properties of actuarially fair and pay-as-you-go health insurance schemes for the elderly. An OLG model approach," Journal of Health Economics, Elsevier, vol. 19(4), pages 477-498, July.
    8. Disney, Richard & Whitehouse, Edward, 2001. "Cross-country comparisons of pensioners’ incomes," MPRA Paper 16345, University Library of Munich, Germany.

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