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Demographic Developments, Funded Pension Provision and Financial Stability

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  • Stefan W. Schmitz

    (Oesterreichische Nationalbank)

Abstract

The following study analyzes the impact of demographic developments in Austria on the long-term average real interest rate, funded pension provision and the implications of demographic developments for the stability of the financial system. The key results of this study are twofold: (1) Households_ net supply of savings and the demand for capital by the corporate sector both need to be integrated into the empirical and theoretical analysis of the impact of demographic developments on financial markets. (2) In addition, funded pension provision is exposed to demographic risks.

Suggested Citation

  • Stefan W. Schmitz, 2005. "Demographic Developments, Funded Pension Provision and Financial Stability," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 9, pages 93-109.
    • Handle: RePEc:onb:oenbfs:y:2005:i:9:b:3
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    File URL: https://www.oenb.at/dam/jcr:92cab867-9ca4-4995-9d4b-b617861f804a/fsr_09_special_03_tcm16-29257.pdf
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    References listed on IDEAS

    as
    1. Börsch-Supan, Axel H. & Jens Köke, F. & Winter, Joachim K., 2005. "Pension reform, savings behavior, and capital market performance," Journal of Pension Economics and Finance, Cambridge University Press, vol. 4(1), pages 87-107, March.
    2. Author-Name: John Geanakoplos & Michael Magill & Martine Quinzii, 2004. "Demography and the Long-Run Predictability of the Stock Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(1), pages 241-326.
    3. Barry P. Bosworth & Ralph C. Bryant & Gary Burtless, 2004. "The Impact of Aging on Financial Markets and the Economy: A Survey," Working Papers, Center for Retirement Research at Boston College 2004-23, Center for Retirement Research.
    4. Werner Dirschmid & Ernst Glatzer, 2004. "Determinants of the Household Saving Rate in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 25-38.
    5. Gunther Tichy, 2005. "Altern ist Leben - Ist es auch finanzierbar?," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 2(2), pages 107-130.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Stefan W. Schmitz, 2007. "Demographic Change, Bank Strategy and Financial Stability," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 13, pages 98-114.

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    More about this item

    Keywords

    Financial Stability; Pension Funds; Demographics; Ageing;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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