Economic well-being of middle-aged and elderly adults in India: variations by household composition

Using data on 42,949 households from the recently conducted Longitudinal Ageing Study of India, this paper examined the economic well-being of middle-aged and elderly adults in India. All households were classified into three mutually exclusive groups: households with only elderly members (60+), households with both elderly and non-elderly members, and households with no elderly members. Economic well-being was assessed using subjective well-being and a composite index that comprised per capita consumption expenditure, monthly per capita income, and wealth index. The mean value of the economic well-being index of middle-aged and elderly adults was 53.8 (95% CI 53.3–54.4). It was 51.6 among households with only elderly members, 53.5 among households with both elderly and non-elderly members, and 54.9 among households without any elderly members. Health expenditure accounted for 20% of the consumption expenditure among households with only elderly members compared to 13% among households with both elderly and non-elderly members and 12% among those with no elderly members. Controlling for socio-demographic characteristics, households with only elderly members and those with both elderly and non-elderly members had a lower economic status compared to households with no elderly members. Subjective well-being was positively and significantly associated with the objective measures of well-being as measured by the composite index. When the economic well-being was measured using per capita consumption expenditure alone, households with middle-aged and elderly adults were found to be better-off than households with non-elderly members. However, when we measured the economic condition using the comprehensive economic measure, we found the elderly households to be poorer than the non-elderly households. Economic independence is key for the elderly living independently, but the poor elderly have no choice except to live with their children for their survival. These findings highlight the need for strengthening social security and ensuring health protection for the elderly in India.