Laoreet Dolore Magna Aliquam

Changing Family Structures and Intergenerational Transfers of Time and Money within Families

Helen Feist PhD | Deputy Director Australian Population and Migration Research Centre, University of Adelaidehelen.feist@adelaide.edu.au www.adelaide.edu.au/apmrc 0Intergenerational Family TransfersIntergenerational familial support as social insuranceAssistance can take many formsChanging societies, changing families and ageing populations are influencing the nature of family support between generationsGrowing number of seniors now and into the future often seen as an economic and service burdenbut what is the reality?

Life Impact | The University of Adelaide1Changing Population and Family StructuresProportion of Australian Population Aged Under 15 years and 65 years +, from 1901 to 2006Declining Fertility rate + increasing life expectancy means more older people, fewer younger people

The rise in the proportion of the older population is also indicative of a rise in lone person households in coming years

Smaller families mean fewer sources of support for older people, particularly those living alone

Life Impact | The University of Adelaide2Outline of the ResearchHow much time is given to, and received from, different generations by older people and what is the economic value of this? What demographic and socio-economic attributes influence the transfers of time and money between generations? How much money is given to, and received from, different generations by older people?What motivates the older generation to make time and/or money transfers?What are transfers used for by the younger generation?Are time and money substituted for each other and what influences the substitution?

Life Impact | The University of Adelaide3Respondent Family TypologiesPANKS:Parents and No KidsKANPS:Kids and No ParentsNoKPS:No Kids or ParentsPAKS:Parents and Kids, or the sandwich generation

Life Impact | The University of Adelaide

4Age/Gender of actual sample and weighted sample

Life Impact | The University of AdelaideWe defined the older population at those aged 50+ so to include both the current and next older population. This definition means many respondents fit into the sandwich group; i.e. they are supporting or caring for both younger and older family members outside the family home.

The dotted lines on the chart show the age and gender of the respondents surveyed. The solid lines on the chart show the age and gender of the total population aged 50+ living in the surveyed states. The responses we collected have been weighted by age and gender to match the distribution of the total population. 5

Life Impact | The University of AdelaideRespondent Household Structures6Giving and receiving practical help

61% provide practical help to family membersMedian amount given, 5 hours/week/household

30% receive practical help from family members Median amount received, 5 hours/week/household

Life Impact | The University of Adelaide7Giving or Receiving Time Transfers by Age

Life Impact | The University of Adelaide8How Much Time is Given 50 - 6465 - 7475+No amount stated3.69.910.0Up to 5 hours44.042.060.15 hours or more 52.748.630.1Number of hours of practical help given per week by respondent age

Life Impact | The University of Adelaide9Amount of Time Given by Gender BUT females who do help give more time than males

How much they give per week...

Life Impact | The University of Adelaide10Who Gives Time by Income

Life Impact | The University of Adelaide11Other Factors Influencing Time TransfersChildren: respondents with no children were the least likely to both give and receive both practical and financial help

Siblings: a smaller proportion of people with no living siblings provide help to family members compared to other groups but...

Marital status: Respondents who were separated divorced were more likely to give practical help to other family members but....

Life Impact | The University of Adelaide12Summary of Time Given and Received

Life Impact | The University of AdelaideGave Practical Help Received Practical HelpProportion of individuals

60.7%29.2%Average number of hours/week/person*7.18.0Annual value/person**$9,658$10,882Total value for Australian 50+ population36.3 Billion19.4 Billion* Only those respondents who gave or received ** Based on Australian Average Weekly Earnings hourly rate, $26.1613The Value of Giving for the Australian Economy Approximately 36 Billion per annum is given in practical help to other family members by people aged 50 years and over in Australia, this compares to:

A national government annual expenditure on health in 2010 of $21 billion;The national government annual expenditure on education in 2010 of $8.5 billion, or theNational government annual expenditure on defence in 2010 of $19.4 billion.

It can also be compared to: Value of production in the mining industry: $25 billionValue of retail industry: $14.6 billion

Life Impact | The University of Adelaide(ABS Cat No. 5206 Table 6)By just examining the value of time given as practical help by older people in Australia we can clearly see that this equates this an incredible sense of value to the Australian economy that generally remains unacknowledged and undervalued. If considered as a service industry it is more valuable to Australia than either the mining or retail industries.

And although this is counterbalanced by a small proportion of the older population receiving practical help it must also be remembered that they are receiving the equivalent of over 19 billion dollars of assistance from their family members, at no cost or burden to the state.

This highlights how productive older Australians are and helps to dispel the myth that they are in fact only a burden to society as they grow older. It must be remembered that this figure represents only the value of time given, without the addition of the value of money given to other generations and not taking into account other valuable contributions older Australians make in terms of volunteering and paid work.

14For more information regarding this project please contact:Dr Lisel ODwyerlisel.odwyer@adelaide.edu.au

Life Impact | The University of AdelaideProject Researchers: Lisel ODwyer PhDHelen Feist PhDKelly Parker PhDJennifer Buckley PhDGeorge Tan PhD

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