MACRO-FINANCIAL INTERACTIONS AND PENSION FUND DEVELOPMENT OF AGING VS. YOUNGER NATIONS

Abstract

The study examines how dependence ratio, replacement rate, average salary, working wage, and other macro factors affect pension fund growth. The paper shows how these factors vary in aging and younger OECD countries and helps explain the macro dynamics that underpin OECD economies' massive asset-holding finance sectors.
Dynamic panel data model was applied to examine the individual relevance of included variables in the model progressively, and R²-change was seen to identify the fundamental macro factors driving pension fund growth. The study finds that Average Age, Working Wage, Personal Income Tax, and Inflation positively affect pension funds in AGING economies and negatively in YOUNGER economies depending on growth viewpoint. The paper's approach may help OECD pension fund policymakers and data analysts make decisions about pension fund management and its core determinants. A literature review of research in several economies determined the macroeconomic elements used in the study. Thus, the study might be used to analyze pension fund growth across economies.