It is widely believed that the Chinese elderly enjoy high levels of family support. The success of the "one couple one child" campaign has made the Chinese and non-Chinese aware of the fragility of intergenerational transfer payments. The spectre is raised of a typical family as one with a couple in their early 40s caring for four elderly parents and a teenager. Recent studies indicate that the elderly living with at least one child (joint living) is the norm, despite variations among communities and classes. In cities, housing shortages and income are determining factors. For rural elderly, the wealthier are more likely to live jointly, although the new responsibility system does not force children into joint living. Individual preferences, class, and regional differences will produce more varied household compositions. Until 1978 most elderly relied on their children for financial support. With retirement legislation of 1978, the number of pensioners has rapidly grown, and the generous amount of the pensions has often made elderly parents the family's dominant financial power. It is unknown if the one couple one child policy will be successful and strain families in 40 years. By the end of this century the dependency ratio will dramatically drop with more workers per retired person. If this produces more wealth, and thus less financial pressure for joint living, more diversity can be expected in the family life of Chinese elderly. (ABL)