The report considers long-term demographic change and analyses some of the key economic issues associated with it.These include the impact of immigration on economic growth and on countries’ fiscal positions; the distribution of debt across different age cohorts; and the challenges associated with an ageing population.
The report also sets out a number of conclusions and recommendations, including the following:
- The impact of population ageing and a shrinking workforce will make it important for governments to think about how they can make their economies attractive to workers in a world of increased international mobility.
- A regulatory regime that supports market-oriented approaches to longevity risk will be important. Bulk buy-outs are one option, but the sector might also benefit from the use of markets in longevity hedging instruments.