The Effects of Population Ageing on Private Consumption — A Simulation for Austria Based on Household Data up to 2050

The level, as well as the structure of private consumption, is influenced by the age structure of the population. This is shown for Austria in the first part of the paper. Age-specific saving rates and consumption patterns on national and regional levels are identified through an analysis of household data of the Austrian consumer budget survey. In a second step, the gained data is used to simulate the future development of the private saving rate and consumption structure in Austria, based on the population projections up to 2050. According to the simulation results, an increase in the private saving rate is to be expected on a national, as well as on a regional level, due to the changing shares of age groups. Furthermore, consumption goods and services in the field of transport will lose significance in favour of expenditures for housing, water, electricity, gas and other fuels, food and non-alcoholic beverages, as well as health products and services. Copyright Eurasia Business and Economics Society 2012