This study examines the association between peoples' current period consumption decisions and their expectations of receiving public transfers in the future. Using the 3 most recent waves of a panel data of elderly respondents 50 years or older, this study finds that expectations of receiving public transfers in the future was positively associated with peoples' current consumption decisions after controlling for a number of socioeconomic and demographic related variables. The findings have immediate policy relevance and provides insight into the financial decision making process of households expecting future public transfers.
