1. Changing Patterns of Intergenerational Transfers and Life-Cycle Consumption in Finland and Sweden 1990-2006 The 3rd EuroNTA Workshop 28 October 2010 Institute for Future Studies Stockholm, Sweden Marja Riihelä, Government Institute for Economic Research Risto Vaittinen, Finnish Centre for Pensions Reijo Vanne, Finnish Pension Alliance Jovan Zamac, Inst. For Future Studies, Stockholm

2. Contents Age structure of the population 1900 - 2050 Real growth and labor force and employment rates 1975 - 2007 Aggregate LCD and its finance 1975-2007 Labor income, consumption and LCD by age 1990 and 2006 LCD and components of its finance by age group 1990 - 2006

3. …”yesterday when we were young”, Sweden used to be the oldest country in the world

5. Source: Statistics Finland and Sweden

6. Working-aged and employed persons as % of pop in 1975–2009 in Fin and Swe

7. Sources: Statistics Finland, own calculations, NTA database Aggregate LCD as percentage of aggregate labor income in Finland and Sweden 1975 – 2007 Business cycle based changes and one structural change in Finland?

8. Private and public asset-based reallocations in Finland …higher asset income and private saving

11. Labor income and consumption by age in 1990 and 2006 in Finland

12. 19902006 22 % LCD diff=Dem+Beh&Pol  14=6+8 Labor income and consumption sums by age as percentage of aggregate labor income in 1990 and 2006 including decomposition of the LCD change to demographic, behavioral and policy effects

13. Labor income by age in 1990, 1993 Sweden

14. Labor income by age in 1990, 1993, 2006 Sweden

15. Labor income and consumption by age in 1990, 1993 Sweden

16. Labor income and consumption by age in 1990, 1993, 2006 Sweden

24. LCD over wages

25. LCD and Debt

26. LCD and Debt Swe

27. LCD and Debt Fin

28. LCD /Debt Fin and Swe

29. LCD /Debt Swe 1950 - 2006