Economic consequences of ageing

Overview

How does population ageing affect individuals’ economic conditions? How do economic incentives related to active ageing influence behaviour? How do they affect public finances? What will an older population look like in terms of household structure?

This interdisciplinary research field combines inputs of demographers and economist to update our knowledge on the economic effects of ageing and to provide new information on specific thematic areas. It starts with a state-of-the-art review of the studies on the economic effects of population ageing.

The first thematic study updates, improves and expands projections of the future demographic trends of selected member countries, especially household structures and mortality rates at old age. The results help to predict the need for and supply of informal care, the adequacy of retirement incomes and the demand for life-time annuities.

The next study analyses how specific policies, implemented in Finland, but applicable also in other countries would influence formal and informal labour supply of elderly citizens and sustainability of public finances.

The third thematic study simulates with an EU-wide economic model how tax policy and on-the-job training enables and stimulates employment and consumption of elderly citizens. It also provides macroeconomic outcomes of such policies.