A Review of the Impact of Population Aging on Financial Markets and Macroeconomy and the Corresponding Response Strategies

Population aging, a profound demographic shift sweeping across developed and developing economies alike, exerts far-reaching impacts on financial markets, labor forces, consumption patterns, and social welfare systems. This paper delves into how this trend reshapes financial systems and macroeconomic stability, examining mechanisms such as the shrinking of working-age populations altering savings-investment dynamics, the rising demand for retirement financial products restructuring capital market compositions, and the strain on public pension systems increasing fiscal risks. It explores how aging affects long-term capital allocation efficiency, changes risk preferences in financial institutions, and impacts macroeconomic indicators like productivity growth and public spending structures. Drawing on comparative insights from Japans experience with prolonged aging and Germanys pension reform strategies, the study proposes tailored measures for China, considering its unique context of rapid aging, large population base, and ongoing economic transition, including adapting regulatory frameworks, fostering innovation in senior-oriented financial products, and integrating technology in public policy execution.