Hong Kong intergenerational upward financial support

Abstract

Hong Kong is facing an ageing population and increased life expectancy. However, Hong Kong does not have a universal pension system and the income security of older people is therefore increasingly discussed. The main income sources of older people are earnings from employment and from savings and investments, as well as government welfare, and financial support from their families. However, income from employment, savings and investments are limited. Also, social policy in Hong Kong follows the residual model that it is the duty of a family to provide support to their family members, and government financial support plays a minor role. In other words, since the structure of the population is changing and limited support from other income sources, it is important to take a closer look at upward financial support.

The major objective of this study is to examine which model of motivation best explains upward financial transfer in the Hong Kong context. Three theories of motivation of intergenerational support are selected to explore which model(s) could be suitable for use in Hong Kong. These are the Power and Bargaining Model, the Mutual Aid Model and the Altruism Model.

Cross-sectional data was collected from surveys of 200 older people in elderly centers. Respondents were asked whether they received financial support from their children or not. The primary aim was to discover the dominant motivation for upward financial support. The dominant model was found to be the Altruism Model. The Altruism Model is based on parents’ economic needs. In other words, this study reveals that supporting parents’ needs is a crucial motivation for intergenerational financial support in HK. Meanwhile, the findings also reveal that having more children, living together with children, having a closer relationship with children, and children with higher education are significantly associated with upward financial support. These findings have valuable implications. The findings enrich our theoretical understanding of the motivation of upward financial support in Hong Kong. Also, the findings contribute some suggestions for elderly social policy making.