Publication:
Reverse Mortgages, Financial Inclusion, and Economic Development: Potential Benefit and Risks

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dc.contributor.authorKnaack, Peter
dc.contributor.authorMiller, Margaret
dc.contributor.authorStewart, Fiona
dc.date.accessioned2020-02-06T16:25:25Z
dc.date.available2020-02-06T16:25:25Z
dc.date.issued2020-01
dc.description.abstractThis paper examines the state of reverse mortgage markets in selected countries around the world and considers the potential benefits and risks of these products from a financial inclusion and economic benefit standpoint. Despite potentially increasing demand from aging societies -- combined with limited pension income -- a series of market failures constrain supply and demand. The paper discusses a series of market failures on the supply side, such as adverse selection, moral hazard, and the costly regulation established to address these problems, leading to only a small number of providers, even in developed markets. Demand-side constraints are equally relevant, in particular high non-interest costs, abuse concerns, and the inability of reverse mortgages to cover key risks facing the elderly, particularly health and elder care. In developing countries, constraints are likely to be even higher than in advanced economies, due to high transaction costs and lack of consumer knowledge and protection. The enabling conditions for such markets to develop are outlined, along with examples of regulatory oversight. The paper concludes that these still seem to be largely products of last resort rather than well-considered purchases as part of good retirement planning.en
dc.identifierhttp://documents.worldbank.org/curated/en/158231580411007157/Reverse-Mortgages-Financial-Inclusion-and-Economic-Development-Potential-Benefit-and-Risks
dc.identifier.doi10.1596/1813-9450-9134
dc.identifier.urihttps://hdl.handle.net/10986/33290
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9134
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectREVERSE MORTGAGE
dc.subjectPENSION
dc.subjectCONSUMER PROTECTION
dc.subjectHOUSING FINANCE
dc.subjectAGING
dc.subjectFINANCIAL INCLUSION
dc.titleReverse Mortgages, Financial Inclusion, and Economic Developmenten
dc.title.subtitlePotential Benefit and Risksen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleReverse Mortgages, Financial Inclusion, and Economic Development: Potential Benefit and Risks
okr.date.disclosure2020-01-30
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/158231580411007157/Reverse-Mortgages-Financial-Inclusion-and-Economic-Development-Potential-Benefit-and-Risks
okr.guid158231580411007157
okr.identifier.doi10.1596/1813-9450-9134
okr.identifier.externaldocumentum090224b08758b830_3_0
okr.identifier.internaldocumentum31743719
okr.identifier.reportWPS9134
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/158231580411007157/pdf/Reverse-Mortgages-Financial-Inclusion-and-Economic-Development-Potential-Benefit-and-Risks.pdfen
okr.statistics.combined5868
okr.statistics.dr158231580411007157
okr.statistics.drstats4811
okr.topicFinance and Financial Sector Development::Finance and Development
okr.topicFinance and Financial Sector Development::Housing Finance
okr.topicSocial Protections and Labor::Pensions & Retirement Systems
okr.unitFinance, Competitiveness and Innovation Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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