Using the panel data from China Health and Retirement Longitudinal Study，this paper examines the impact of the New Rural Pension Scheme (NRPS) policy on the co-residence pattern of the elderly and their children.We find that the policy has significantly reduced the probability of co-residence and thus shocked the co-resident model in China’s rural area.Taking the elderly’s characteristics into consideration，the result suggests that the elderly would be more sensitive to the policy if they were in low-income status and not widowed.Furthermore，when matching the residence intention and living arrangement of the older people，it is found that the policy significantly increases the possibility of living alone，thus reducing the dependency on support from children.In order to promote the welfare improving effect of NRPS，we can increase the “Bottom Line” of the basic pension.