Study on the Path to Enhance Financial Demand for Elderly Care Services in Chinese Families from the Perspective of Intergenerational Wealth Transfer

Abstract

With the accelerating aging of the population and the rise of pension finance to a national strategy, effectively improving the financial demand for family-based elderly care services has become a crucial issue that urgently needs to be addressed. This paper, from the perspective of intergenerational wealth transfer, comprehensively utilizes intergenerational transfer theory and, based on the 2022-2023 China Inter-Sectoral Financial Flow Matrix (SBYS) data, systematically analyzes the financial asset and liability structure and intergenerational capital flow characteristics of the household sector. Combining existing micro-level empirical research findings, it explores the impact mechanism and improvement path of intergenerational wealth transfer on the financial demand for elderly care services. The study finds that intergenerational transfer of family wealth profoundly influences the income level, employment decisions, and savings behavior of the next generation through channels such as human capital investment, direct gifts, and inheritance, thereby shaping the family's demand for pension financial products. Macroeconomic capital flow data shows that household financial investment continues to expand, with the proportion of pension reserve assets, mainly deposits and insurance reserves, increasing. However, intergenerational capital flows are still dominated by indirect financial intermediaries, and direct intergenerational transfer tools need further development. Based on this, this paper proposes multiple approaches, including improving the pension system, innovating intergenerational wealth transfer financial products, promoting the inclusiveness of digital finance, and strengthening social network support, to promote a positive interaction between intergenerational wealth transfer and the financial needs of elderly care services.