How long can pensioners keep spending?

Population ageing has weighed on the average employee’s disposable income as social security contributions have risen by nearly 50% over the past fifteen years, and will continue rising in future. Still, with the elderly population growing fast, average pensions have fallen during this period, forcing retirees to run down savings at a rapid pace. A realignment of pensioners’ spending and income would therefore pose a risk to private consumption in coming years.