The purpose of this study was to analyze empirically the welfare needs of the elder and to suggest some desirable policy directions for the elder`s welfare in the era of local autonomy. This paper will contribute to the theory building and the applicability of the welfare policy based on the theoretical review of Dolgoff`s Feldstein`s and Miura`s welfare policy paradigms. The model-building developed in this paper might be an useful instrument for the understanding of dynamics and need-status of the elder people in the policy processes of the welfare field. And particularly, with surveying the elder people in residence in "P" city on the welfare needs, this research paper diagnosed the senior citizen`s perceptions and needs in the local administration. Based upon those findings, this study critically outlined the decisions on social quota, social payments, and on welfare finances and delivery systems; First, the decisions should be made on the objects of welfare needs. Second, after that, the sorts and types of welfare payments be decided on the characteristics of the welfare dependents. And the quantity and quality of welfare be judged from those of welfare services. The quality of welfare services be carefully approached. And third, the service delivery and the financing decisions depend upon the delivery agent and on the financial revenue collection system. Thus, the level of service delivery should be decided upon some criteria, such as the effectiveness and efficiency of need-satisfactions and the welfare dependents` feel-free accessability to the welfare opportunities.