REVERSE MORTGAGES FOR MANAGING LONGEVITY RISK IN KOREA
- 주제(키워드) reverse mortgage , longevity risk , expected utility function , optimization , bequest
- 주제(기타) Economics
- 등재 SSCI, SCOPUS
- 발행기관 HITOTSUBASHI UNIV
- 발행년도 2019
- 총서유형 Journal
- URI http://www.dcollection.net/handler/ewha/000000161237
- 본문언어 영어
초록/요약
This study examines how longevity risk can be alleviated by using reverse mortgage loan system in Korea, Joo-Taek-Yeon-Keum (JTYK). We compare the expected utility value of JTYK borrowers during retirement with that of non-JTYK borrowers, and identify characteristics of groups earning the greatest benefits from the JTYK. The results imply that it is especially beneficial for homeowners aged 67 and older, and its benefit increases if the bequest value is included. We also calculate the Money's Worth Ratio (MWR) of the JTYK, and show that MWRs increase as the opt-in age increases if the bequest is considered as financial gain.
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