Estimates of consumption by age in China (Chen and Lee 2014; Cai et al. 2014) show a
relatively constant level of consumption across generations in China, especially in rural
areas. On the one hand, this result could be considered a remarkable feat of
intergenerational support: Even though the current elderly had much lower standards of
living when they were working and limited opportunities for savings and investment,
they are nevertheless sharing in the higher level of consumption that their children and
grandchildren are now enjoying. On the other hand, relatively flat consumption by age
could indicate a policy gap. In high-income countries, consumption by age is (steeply)
increasing at older ages, driven by large healthcare expenditures. The consumption
profile by age in China and India, especially in rural areas, suggests that many older
adults may be foregoing the kind of medical care that those in higher-income countries
regularly consume.