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Demographic change and the UK savings rate

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  • David Demery
  • Nigel Duck

Abstract

Microeconomic data are used to explore the effects of a changing age-structure on the UK's aggregate personal savings rate. The findings suggest that changes to the population's age structure have had detectable, sustained, but, relative to the yearly changes observed in the savings rate over the previous century, modest effects on aggregate personal sector savings. It is estimated that the projected changes to the UK's age structure over the next 40 years are likely to raise the UK's savings rate but by no more than two percentage points. No basis is found for the view that the aggregate savings rate will decline as a result of the anticipated ageing of the UK population.

Suggested Citation

  • David Demery & Nigel Duck, 2006. "Demographic change and the UK savings rate," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 119-136.
  • Handle: RePEc:taf:applec:v:38:y:2006:i:2:p:119-136
    DOI: 10.1080/00036840500390361
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    References listed on IDEAS

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    1. David N. Weil, 1994. "The Saving of the Elderly in Micro and Macro Data," The Quarterly Journal of Economics, Oxford University Press, vol. 109(1), pages 55-81.
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    5. Miles, David, 1999. "Modelling the Impact of Demographic Change upon the Economy," Economic Journal, Royal Economic Society, vol. 109(452), pages 1-36, January.
    6. Orazio P. Attanasio & Guglielmo Weber, 1993. "Consumption Growth, the Interest Rate and Aggregation," Review of Economic Studies, Oxford University Press, vol. 60(3), pages 631-649.
    7. Paxson, Christina, 1996. "Saving and growth: Evidence from micro data," European Economic Review, Elsevier, vol. 40(2), pages 255-288, February.
    8. Angus Deaton & Christina Paxson, 2000. "Growth and Saving Among Individuals and Households," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 212-225, May.
    9. Orazio P. Attanasio & Hilary Williamson Hoynes, 2000. "Differential Mortality and Wealth Accumulation," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 1-29.
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    11. Andrew Chesher, 1997. "Diet Revealed?: Semiparametric Estimation of Nutrient Intake-Age Relationships," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 160(3), pages 389-428.
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    Cited by:

    1. Ansgar Belke & Christian Dreger & Richard Ochmann, 2015. "Do wealthier households save more? The impact of the demographic factor," International Economics and Economic Policy, Springer, vol. 12(2), pages 163-173, June.
    2. repec:zbw:rwirep:0338 is not listed on IDEAS
    3. Ansgar Belke & Christian Dreger & Richard Ochmann, 2012. "Do Wealthier Households Save More? – The Impact of the Demographic Factor," Ruhr Economic Papers 0338, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    4. Øystein Kravdal, 2010. "Demographers’ interest in fertility trends and determinants in developed countries: Is it warranted?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 22(22), pages 663-690, April.

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