Consequently, with ageing, the economy’s capacity to sustain the elderly population would decline. An important consequence of this development is reflected in increasing fiscal pressures through higher government spending on social security, health care and other welfare programs for the elderly accompanied by lower tax buoyancy consequent to falling proportions of the productive labour force.
So, in the end, my guess is that while people will adjust their saving behaviour to some extent, and this will have an effect on financial markets, a large part of the adjustment to the recognition of increasing life expectancy will ultimately need to take the form of prolonging working lives.