How Sustainable is the Familial Support of Elderly in Asia?

Abstract

This paper examines the extent of familial monetary support for the elderly in China, India, Indonesia, Japan, Korea, the Philippines, and Thailand, representing diverse public social security and assistance programs for the elderly across Asian countries. Using the National Transfer Accounts framework, Japan was found to experience the highest and China the lowest lifecycle deficit (LCD). Except Indonesia, the consumption of public and private goods and services at old ages is fast increasing in the Asian countries. In Japan public transfer supports 39.4% of the LCD of the 60 plus population and private asset-based reallocation, which includes liquidation and sale of assets, finances 33.7%. On the other in Indonesia and India LCD of elderly is largely 70.5 and 63.9% respectively are met by private asset-based reallocation. Public support for the 60 plus population in South Korea constitutes 22.9% of the LCD, whereas 52.6% is met by asset-based reallocation. The corresponding figures for China are 41.3 and 32.2% respectively.