Will ageing societies in Europe lead to a new savings glut? To address this potential consequence of demographic change, we assess the relationship between population ageing and safe assets in the euro area, using data from the Eurosystem's Household Finance and Consumption Survey (HFCS). Our findings indicate that ageing is unlikely to lead to a structural shift in the demand for safe assets. The share of safe assets in household portfolios remains relatively stable across most of the age distribution, with only a slight increase among the oldest households. Projections based on demographic forecasts for 2050 point to a marginal change in aggregate demand for safe assets. Our results challenge the narrative that ageing will structurally increase the amount of savings and highlight the need for a nuanced understanding of demographic impact on financial markets and the broader economy.
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Title : Ageing and Demand for Safe Assets in the Euro Area (ESM Brief 2)
Publication : European Stability Mechanism, 2025 (8 pages)