Financer la perte d'autonomie: la piste des prêts viagers hypothécaires et de l'assurance obligatoire

Carole Bonnet, Sandrine Juin and Anne Laferrere

Revue d'économie financière, 2023, vol. N° 152, issue 4, 217-233

Abstract: Within the context of an ageing population, funding long-term care (LTC) remains a challenge. This article explores two possible funding options: individual savings ? especially the use of property assets, which constitute the major part of Europeans' savings ? and the pooling of risks through compulsory LTC insurance. Using SHARE (Survey of Health, Ageing and Retirement in Europe) data and thanks to a microsimulation model, we estimate the disability trajectories of people over 65 in nine European countries and their ability to finance the associated LTC expenditures. While in France only 5% of dependent individuals could pay for their loss of autonomy with just their income, 74% could pay for one year of LTC and 69% for two years with their savings and a reverse mortgage (RM) taken out at the onset of dependency. Using a RM could be done within the context of a compulsory LTC insurance policy that would cover 100% of costs after a deductible (Arrow, 1963), based on the number of years of disability. A RM on part of the value of the home could help to pay the deductible, as well as the insurance premiums. JEL classification: C530, D140, I130, J140.

JEL-codes: C53 D14 I13 J14 (search for similar items in EconPapers)
Date: 2023
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