In this paper we study the potential effects of this disparity on individuals' asset demand and consumption. In particular, we  show that their asset demand will be tilted toward fixed income securities, moving away from the risky assets compared to the case where there is parallel growth in the fixed payment products and variable payment products. The lower the individuals bequest motive, the more pronounced the effect will be. We further show that consumption growth will be lower in the disparate growth case than in the balanced growth case. Since
asset demand and consumption play a crucial roles in determination of asset prices and capital accumulation, the observed disparate growth in the annuity market may portend another threat for the future generation. …