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363-1139-00L 3 Credits MSC D-MTEC

The Economics of Aging, Pensions and Savings

Lecturers & Examiners: Dr. Claudio Daminato
VVZ CR n/a

Last Updated: 2026-02-05 15:49:06

Abstract

Population aging challenges the financial sustainability of social security systems and increases the individual responsibility for retirement security. This course provides an overview of the economics of savings and pensions, introducing the theoretical tools and the quantitative methods to analyze topical questions about individual saving and retirement behavior.

Objective

At the end of the course, students will be able to: - understand the basic economic aspects related to population aging; - explain the structure and functioning of public and private pension systems, and analyze related issues of insurance and incentives; - identify the mechanisms through which the demographic transition challenges the provision of pensions, and discuss reform options; - understand the key theoretical tools used in household finance to analyse the behavior of individuals over their life-cycle; - understand how the most common empirical methods in program evaluation are used to causally identify the effects of pension policies; - analyse and critically discuss policy-relevant questions about individual savings and retirement behavior.

Content

The course introduces students to the key theoretical tools and quantitative methods used in household finance to analyze topical questions around individual saving, portfolio and retirement behavior, with a focus on the role of pension systems and the ongoing demographic transition. The first part provides an overview of causes and economic consequences of population aging, presents an account of public and private pension systems and discusses options for reform. In the second part, the course introduces intertemporal models of individual behavior. This will provide a framework to examine the economic determinants of savings (savings for retirement and precautionary savings), portfolio allocation and retirement. The third part of the course presents and discusses recent empirical evidence from research papers on how individuals save, invest their wealth and plan for retirement, the role of social security and the effects of pension policies. Topics include: the relation between social security wealth and private wealth, the effect of retirement saving incentives on individual behavior, the effect of pension reforms, longevity risk and annuities, the importance of financial knowledge for retirement planning. The lectures offer an introduction to the quantitative methods used to analyze these issues, such as basic model simulation techniques and econometric methods for policy evaluation. No formal prerequisites. The assessment policy is designed to allow students to apply the concepts and methods learnt in class to real-world issues. The assessment will be based on the critical presentation (35%) of one country’s pension system and a final project (65%), in which students may apply the relevant methods to analyze a question related to issues in the economics of aging, pensions and savings.

General Information

Language
English
Levels
MSC
Frequency
Yearly recurring

Examination

Type
graded semester performance

Course Components

Type Title Time & Place Hours
lecture The Economics of Aging, Pensions and Savings
  • Thu 16:15-18:00 (HG E 21)
2 h weekly

Offered In