Study On Promotion Of Housing Reverse Mortgages In China

With the retirement, the socioeconomic status of the elderly decline, income is alsosignificantly reduced. Due to the laws of nature, medical expenditures increase with theincreasing age; China has entered into the aging society. The continuous agingpopulation age structure and the increasing social dependency ratio make the traditionalfamily pension unsustainable. However, China has not yet established a match socialSecurity System. This makes obvious practical need of promoting housing reversemortgages in China. This paper first introduces the theoretical basis and internationalexperience of housing reverse mortgages. According to our pilot, it comes to conclusionthat the traditional concept, lack of policy support are the most two important reasons ofrestricting housing reverse mortgages promotion in China. Then considering the currenteconomic and social development situation, this paper has a comprehensive analysis ofthe necessity, urgency and feasibility of reverse mortgages in the country. And itpromotes a government-led housing reverse mortgages extension system, constructs thecorresponding organizational models and operational processes, use actuarial principlesto study the housing reverse mortgage pricing, demonstrates the main risks of thepromotion of housing reverse mortgage process. And then it considers that assetsecuritization and asset combination are effective ways to control the risks.