Population Aging, Implications for Asset Values, and Impact for Pension Plans: An International Study

The Society of Actuaries is pleased to make available preliminary material for a research project investigating Population Aging and its impact on pension plans. The project is being conducted by a research team from the University of Waterloo and the University of Kent:  Doug Andrews (lead), Steve Bonnar, Lori Curtis, Miguel Leon-Ledesma, Jaideep Oberoi, Kathleen Rybczynski, Pradip Tapadar, and Mark Zhou.


The researchers are looking at the use of an overlapping generations (OLG) model to model the impact of population structure on returns across asset classes.  As preliminary work, they have prepared several items:

  • Phase 1: A comprehensive literature inventory and review summary providing background regarding overlapping generations (OLG) models
  • Phase 1: A description of the proposed model specifications. 
  • Phase 2: A comprehensive literature review on demographics and asset returns plus model specifications relating to housing prices.
  • A paper examining the link between population structure and asset values, by generating returns on assets in the presence of demographic change using an Overlapping Generations Model (OLG).

And overall, as they proceed to new phases of the project, the authors are looking for input from actuaries and others interested in this work. Please contact Doug Andrews, dwa007@hotmail.com, with any feedback and input you have regarding the model specifications.


Literature Review on Demographics and Asset Returns and Model Specifications Related to Housing Prices

Use of Overlapping Generations Model in Modeling Demographic Change Introduction to the Literature Review

Use of Overlapping Generations Model in Modeling Demographic Change – Summary of the Literature Review

The OLG Model Environment 

Population Structure and Asset Values

If you have any questions or comments regarding the report, please contact Steve Siegel, Research Actuary at ssiegel@soa.org.

Thank You

The Society of Actuaries would like to thank the Project Oversight Group (POG) for their input and review.  The POG included representatives of the Canadian Institute of Actuaries, International Faculty of Actuaries, and the Society of Actuaries.

Jim Bridgeman
Mark Coleman
Ian Genno
Frank Grossman
Robert Hudson
Nari Persad
Robert Reitano
Steven Rimmer
Catherine Gauld, IFoA Research Project Manager
Steve Siegel, SOA Research Actuary
Barbara Scott, SOA Sr. Research Administrator

Questions Or Comments?

If you have comments or questions, please email research@soa.org.