In this research, we ask: will the pension plan payments be adequate for the retirement needs of an ageing population?
We implement existing economic and demographic models in actuarial literature to quantify financial risks underlying large pension plans. This will then enable us to investigate the impact of ageing population on pension plans by incorporating models specifically designed to capture the impact of ageing on both economy and demography.
The interaction between population structure, investments and asset returns will be of interest to pension funds, actuaries and policy-makers, all of whom are interested in the overall health of both public and private pension plans.