Demand for Home Pension and Reverse Mortgage: An Information Provision Survey Experiment

Duk Gyoo Kim and In Do Hwang
Additional contact information
Duk Gyoo Kim: Yonsei University
In Do Hwang: Bank of Korea

No 2025rwp-273, Working papers from Yonsei University, Yonsei Economics Research Institute

Abstract: Elderly poverty remains a critical issue in South Korea, despite widespread homeownership among older adults. Although the home pension program allows retirees to unlock housing wealth, uptake remains below 2% as of 2024. Using a large-scale survey of adults aged 55-79, we conduct an information provision experiment to assess how policy reforms and belief corrections affect demand. We find that enrollment intention rises by 6 percentage points when monthly pension payments are adjusted with house price changes, and by 5 percentage points when bequest conditions are made more flexible. Notably, merely informing that the fixed monthly payments-often perceived as disadvantageous during housing price increases-do not result in a loss when house prices rise because the amount bequeathed to their children increases accordingly, led to a 7%p increase in enrollment intention. Our results suggest that addressing informational barriers may be as effective as structural reforms in increasing program uptake.

Keywords: Home Pension; Reverse Mortgage; Survey Experiment (search for similar items in EconPapers)
JEL-codes: C93 D14 H55 (search for similar items in EconPapers)
Pages: 33pages
Date: 2025-11
New Economics Papers: this item is included in nep-age and nep-exp
References: Add references at CitEc
Citations:

Downloads: (external link)
http://121.254.254.220/repec/yon/wpaper/2025rwp-273.pdf (application/pdf)

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:yon:wpaper:2025rwp-273

Access Statistics for this paper

More papers in Working papers from Yonsei University, Yonsei Economics Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by YERI ().