Aging, Savings, and Pensions in the Group of Seven Countries: 1980-2025

Abstract

In the next 30-40 years, past changes in fertility and mortality will lead to a significant increase in the share of the elderly. This study suggests that these demographic trends may lead to a decline in the G-7 private savings rate after 2000, compounding the impact of social expenditure pressures on the government`s deficit. Moreover, public pensions may decline as a share of the consumption needs of the elderly, leading to financial pressures to reduce their consumption. The reduced burden of child support on the working population will not offset the increased burden of societal support for the elderly.

JEL Classification: 1221, 1320, 3221, 8410, 9211, 9180