As such, the key issue is whether such support is provided by private or public funding. It may be noted that the inability of private provision implies greater reliance on public funding which is a burden on the fisc. In the Asian context, this issue is of great relevance as ageing is occurring at lower income levels.
The redistribution of resources from younger to older generations has to be concerned with the incentive for savings, keeping in view the need for higher investment in sustaining the growth process. In addition to the redistribution of resources from young to old, there also have to be some resource transfers from the affluent to the less well off.