Examining intergenerational transfers in Malaysia

With the demographic changes toward the aging population, the role of intergenerational support and transfers has become increasingly prominent in the family support network. Using the Malaysia Ageing and Retirement Survey Wave 1 conducted in 2018/2019, this study analyzed the flow and factors associated with the amount of intergenerational financial transfers across three generations via multiple regression analysis. The results showed an upstream flow of financial support from younger to older generations. Variables with significant capability in determining the amount of intergenerational financial transfers include age, gender, ethnicity, education level, marital status, employment, health status, number of living children or parents, income, and financial assistance received from the government. Findings from this study are useful for policymakers to understand the issues of old-age financial security in Malaysia and thus implement relevant policies such as improving the coverage and adequacy of existing social protection programs, strengthening family support networks, as well as educating the public on the importance of having sound financial knowledge.