The population structure may put the pension fund business in decline

When we reach the ageing population, more people are ready to collect their pensions through the public and private channels. Although the age of retirement has been rising, these people will collect their pensions one day and this could make the pension funds have a tough time. Moreover, if there are more people retiring than those who enter the labour market and pay their contributions to the pension schemes, then there could be a limited fund growth or even a deficit in the cash flow of the pension funds.  This could put pressure on the pension funds to generate higher returns of their funds in order to attract more funds, so the pension funds may take more risky strategies, leading to an increase in the systemic risk within the pension operation or even the whole economy. To conclude, the current population structure may increase the systemic risk and cause a decline in the pension fund business.