This paper focuses on the economic status of the elderly, with specific refer- ence to their family relationships. First, the transformation of the Japanese household structure in the postwar period is reviewed. Second, the income of elderly households under both conventional and alternative definitions is compared with that of average households for a better understanding of their relative economic status. The distribution of the income and wealth of elderly households is a major concern here. Third, the high proportion of the elderly living with their children, though declining steadily over time, has been a par- ticular characteristic of the Japanese family. Major factors determining the coresidence of the elderly with their children are analyzed based on cross- sectional data by prefecture. Finally, we arrive at some policy conclusions from the above discussions