Meeting the Challenges of Longevity: Lifetime Income from Real Estate

Emilia Di Lorenzo (), Francesco Rania (), Marilena Sibillo () and Annarita Trotta ()
Additional contact information
Emilia Di Lorenzo: University of Naples Federico II, Department of Economic and Statistical Sciences
Francesco Rania: University of Catanzaro Magna Graecia, Department of Law, Economics and Sociology
Marilena Sibillo: University of Salerno, Department of Economics and Statistics
Annarita Trotta: University of Catanzaro Magna Graecia, Department of Law, Economics and Sociology

A chapter in Mathematical and Statistical Methods for Actuarial Sciences and Finance, 2024, pp 124-129 from Springer

Abstract: Abstract The reverse mortgage, in spite of its low uptake, is a tool of protecting the so-called house rich-cash poor persons. It represents an opportunity especially in social realities with a high aging population, pension systems struggling to guarantee acceptable living standards, significant proportion of homeowners with insufficient income to meet daily expenses. The paper is interested in this contract by looking at it from the point of view of the provider/lender who commits to a payment to the borrower/pensioner against the amount that will be made when the house is sold, in which the borrower will continue to live for life. Our focus is on quantifying the risks that impact the contract, due to three main sources of uncertainty. The purpose is to provide formulas for quantifying each of these risks, which are easy to interpret and apply, and useful for proceeding to profitable risk control strategies.

Keywords: Reverse mortgages; solutions for retirement; risk analysis; risk indexes (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-64273-9_21

Ordering information: This item can be ordered from
http://www.springer.com/9783031642739

DOI: 10.1007/978-3-031-64273-9_21

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().