IDEAS home Printed from https://ideas.repec.org/a/sae/inddev/v18y2024i3p440-454.html

Retirement Savings and Elderly Living Arrangements: Evidence from India

Author

Listed:
  • Reshmi Sengupta
  • Debasis Rooj

Abstract

This article examines the role of retirement savings on the living arrangements of persons aged 60 years and above in India. A major challenge to empirically analyse this relationship is the lack of a comprehensive database that captures the financial savings and health indicators of the elderly population in India in the same framework. Therefore, we use two nationally representative data sets and combine them at the district level for our empirical exercise. We exploit the exogenous variation in the exposure to retirement savings across the districts to analyse how retirement savings impact the living arrangements of elderly persons. Our findings indicate that elderly persons in districts with high retirement savings are more likely to live independently. Elderly people from the lower-income strata with retirement savings are more likely to live independently than those from higher-income groups. Our results demonstrate the importance of retirement savings in improving the welfare of the elderly population and the need for further improving the financial penetration among the elderly in India.

Suggested Citation

  • Reshmi Sengupta & Debasis Rooj, 2024. "Retirement Savings and Elderly Living Arrangements: Evidence from India," Indian Journal of Human Development, , vol. 18(3), pages 440-454, December.
    • Handle: RePEc:sae:inddev:v:18:y:2024:i:3:p:440-454
    DOI: 10.1177/09737030251327991
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09737030251327991
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09737030251327991?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Meliyanni Johar & Shiko Maruyama, 2011. "Intergenerational cohabitation in modern Indonesia: filial support and dependence," Health Economics, John Wiley & Sons, Ltd., vol. 20(S1), pages 87-104, September.
    2. Kathleen Mcgarry & Robert Schoeni, 2000. "Social security, economic growth, and the rise in elderly widows’ independence in the twentieth century," Demography, Springer;Population Association of America (PAA), vol. 37(2), pages 221-236, May.
    3. Annamaria Lusardi & Olivia S. Mitchell, 2008. "Planning and Financial Literacy: How Do Women Fare?," American Economic Review, American Economic Association, vol. 98(2), pages 413-417, May.
    4. Robert Michael & Victor Fuchs & Sharon Scott, 1980. "changes in the propensity to live alone: 1950–1976," Demography, Springer;Population Association of America (PAA), vol. 17(1), pages 39-56, February.
    5. Joseph Winchester Brown & Jersey Liang & Neal Krause & Hiroko Akiyama & Hidehiro Sugisawa & Taro Fukaya, 2002. "Transitions in Living Arrangements Among Elders in Japan," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 57(4), pages 209-220.
    6. Costa, Dora L., 1999. "A house of her own: old age assistance and the living arrangements of older nonmarried women," Journal of Public Economics, Elsevier, vol. 72(1), pages 39-59, April.
    7. Costa, Dora L, 1997. "Displacing the Family: Union Army Pensions and Elderly Living Arrangements," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1269-1292, December.
    8. Eric V. Edmonds & Kristin Mammen & Douglas L. Miller, 2005. "Rearranging the Family?: Income Support and Elderly Living Arrangements in a Low-Income Country," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    9. Chen, Xi, 2015. "Old-Age Pension and Intergenerational Living Arrangements," IZA Discussion Papers 9482, IZA Network @ LISER.
    10. Carlos Bethencourt & José-Víctor Ríos-Rull, 2009. "On The Living Arrangements Of Elderly Widows," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(3), pages 773-801, August.
    11. Gary V. Engelhardt & Jonathan Gruber & Cynthia D. Perry, 2005. "Social Security and Elderly Living Arrangements: Evidence from the Social Security Notch," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
    12. Cai, Fang & Giles, John & Meng, Xin, 2006. "How well do children insure parents against low retirement income? An analysis using survey data from urban China," Journal of Public Economics, Elsevier, vol. 90(12), pages 2229-2255, December.
    13. Marco Manacorda & Enrico Moretti, 2006. "Why do Most Italian Youths Live with Their Parents? Intergenerational Transfers and Household Structure," Journal of the European Economic Association, MIT Press, vol. 4(4), pages 800-829, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lingguo Cheng & Hong Liu & Ye Zhang & Zhong Zhao, 2018. "The heterogeneous impact of pension income on elderly living arrangements: evidence from China’s new rural pension scheme," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 155-192, January.
    2. Feng, Lyubing & He, Yuxi & Zhan, Peng, 2023. "Economic independence and living arrangements of older women with agricultural Hukou in China," China Economic Review, Elsevier, vol. 81(C).
    3. Emma Aguila & Jung Ho Park & Alma Vega, 2020. "Living Arrangements and Supplemental Income Programs for Older Adults in Mexico," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1345-1368, August.
    4. Hsin-Ling Hsieh & Shin-Yi Chou & Echu Liu & Hsien-Ming Lien, 2015. "Strengthening or Weakening? The Impact of Universal Health Insurance on Intergenerational Coresidence in Taiwan," Demography, Springer;Population Association of America (PAA), vol. 52(3), pages 883-904, June.
    5. Erin Hye-Won Kim, 2015. "Public transfers and living alone among the elderly," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(50), pages 1383-1408.
    6. Brian Gratton & Myron P. Gutmann, 2010. "Emptying the Nest: Older Men in the United States, 1880–2000," Population and Development Review, The Population Council, Inc., vol. 36(2), pages 331-356, June.
    7. Pensieroso, Luca & Sommacal, Alessandro, 2014. "Economic development and family structure: From pater familias to the nuclear family," European Economic Review, Elsevier, vol. 71(C), pages 80-100.
    8. Emily Merchant & Brian Gratton & Myron Gutmann, 2012. "A Sudden Transition: Household Changes for Middle Aged U.S. Women in the Twentieth Century," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 31(5), pages 703-726, October.
    9. Gary V. Engelhardt & Jonathan Gruber & Cynthia D. Perry, 2002. "Social Security and Elderly Living Arrangements," NBER Working Papers 8911, National Bureau of Economic Research, Inc.
    10. Dora L. Costa, 2008. "The Rise of Retirement Among African Americans: Wealth and Social Security Effects," NBER Working Papers 14462, National Bureau of Economic Research, Inc.
    11. Greenhalgh-Stanley, Nadia, 2012. "Medicaid and the housing and asset decisions of the elderly: Evidence from estate recovery programs," Journal of Urban Economics, Elsevier, vol. 72(2), pages 210-224.
    12. Engelhardt, Gary V. & Greenhalgh-Stanley, Nadia, 2010. "Home health care and the housing and living arrangements of the elderly," Journal of Urban Economics, Elsevier, vol. 67(2), pages 226-238, March.
    13. Mommaerts, Corina, 2018. "Are coresidence and nursing homes substitutes? Evidence from Medicaid spend-down provisions," Journal of Health Economics, Elsevier, vol. 59(C), pages 125-138.
    14. Zhaohua Zhang & Yuxi Luo & Derrick Robinson, 2018. "Reducing Food Poverty and Vulnerability among the Rural Elderly with Chronic Diseases: The Role of the New Rural Pension Scheme in China," IJERPH, MDPI, vol. 15(6), pages 1-20, June.
    15. Emily E. Wiemers, 2014. "The Effect of Unemployment on Household Composition and Doubling Up," Working Papers 2014_05, University of Massachusetts Boston, Economics Department.
    16. Luca Pensieroso & Alessandro Sommacal, 2019. "Agriculture to Industry: the End of Intergenerational Coresidence," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 87-102, October.
    17. Alejandrina Salcedo & Todd Schoellman & Michèle Tertilt, 2012. "Families as roommates: Changes in U.S. household size from 1850 to 2000," Quantitative Economics, Econometric Society, vol. 3(1), pages 133-175, March.
    18. Eric V. Edmonds & Kristin Mammen & Douglas L. Miller, 2005. "Rearranging the Family?: Income Support and Elderly Living Arrangements in a Low-Income Country," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    19. R. & Junsen Zhang, 2019. "Housing Prices, Inter-generational Co-residence, and “Excess†Savings by the Young: Evidence using Chinese Data," Working Papers 2019-059, Human Capital and Economic Opportunity Working Group.
    20. Eleni Karagiannaki, 2011. "Changes in the Living Arrangements of Elderly People in Greece: 1974–1999," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 30(2), pages 263-285, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inddev:v:18:y:2024:i:3:p:440-454. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.