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This study aims to explore the existence of causal relationship between pension funds and two macroeconomic key variables, namely balance of payments and saving rate for across OECD countries over the period 2001–2015. Employing a panel vector autoregression (PVAR) methodology, bi-directional Granger causal relationships are found between balance of payment, pension funds and saving rate. Results suggest that policymakers should take any possible economic impacts into account while making new regulations regarding pension funds.Keywords: Saving rate, current account deficit, panel VAR, pension funds.