• The rapid ageing of populations in the rich economies can be expected to stimulate strong growth in private funded pensions, providing a massive potential of foreign finance for developing countries.
• Pension managers can reap big diversification benefits by investing on the emerging stock markets of the younger economies, benefits which are largely unexploited so far.
• The authorities in OECD countries should consider removing regulatory constraints imposed on pension assets that deprive retirees from the pension-improving benefits of global diversification.
• Policy makers in developing countries should design policies that reassure institutional investors on default risk and stock market illiquidity, if they want to tap a higher share of OECD pension assets.
