The ageing of the world population is an ineluctable process with major economic
implications. Whereas there is extensive research on macroeconomic effects and on financial asset
prices there has been more limited systematic research into the impact of demographic changes on
financial asset volumes and financial market structure more generally, as driven by age related
household saving and asset allocation decisions. Our empirical work based on experience of 72
countries, viewed in the light of the existing literature, suggests that demographic changes have had a
detectable impact on financial structure. Ageing tends to benefit bond markets relative to equity
markets, while depressing private saving and external balances, albeit not sharply reducing the overall
size of the financial sector. Continuation of such patterns during the coming period of ageing have
wide-ranging implications for policymakers and market participants
