Changes in Subjective and Objective Measures of Economic Well-Being and Their Interrelationship among the Elderly in Singapore and Taiwan

The primary objectives of this paper are: 1) to describe the degree of change in subjective and objective economic well-being over a four-year period, 2) to examine the association between the two types of measures, and 3) to investigate factors associated with change in subjective economic well-being, using panel data on older persons in Singapore (1995-1999) and Taiwan (1989-1993). The results suggest that, although there is little aggregate change in income levels and in perceived adequacy of income, there is considerable gross change. Associations between actual income and perceived adequacy, and between changes in these measures, are quite low in both countries. Investigation of the determinants of change in perceived income adequacy over time suggests that a number of factors reflective of both potential expenditures (e.g., poor health, independent living) and additional economic resources (high education, employment, home ownership) are important predictors above and beyond the effects of actual income.