Abstract: How to care for the aged is always a hot topic concerned by the whole society, and family supporting resources can play a key role as an important force in the pension security. From the perspective of traditional family supporting and intergenerational economics, based on the discussion on the present function of family supporting resources, this paper build a Life Cycle Hypothesis (LCH) model in economics of family supporting resources. Through the analysis with this model, it is inferred that with?the realistic plight of population flowing, changes of family structure, lacking of family supporting resources, expansion of the service demand for the aged, and insufficient funds and resources, a tendency is inevitably coming into being that the ecological function of traditional family supporting the aged will disappear by and by. On the basis of the investigation data, this paper proposes to build a system which is based on economic compensation for family children supporting the aged, relying on caring funds, and providing commercialized, industrialized and socialized service for the aged.

Key words: resources for the elderly; Life Cycle Hypothesis (LCH) model; population mobility