What does it mean to live in retirement? What conditions are needed

China has 178 million elderly people over the age of 60. The economic model for elderly care is mainly child support, pensions, and social security funds. Gradually emerging is the concept of "housing to support the elderly" in which young people take out loans to buy houses, and old people mortgage their houses to banks or insurance companies, and the above-mentioned institutions pay pension expenses, so that they can have no worries about food and clothing in their later years. As far as the current social situation is concerned, there are still many people who don’t understand very well or don’t know at all what “housing for retirement” means? What conditions are needed to “house for retirement”. So what the editor will do next is These people answer these questions.

What does it mean to support the elderly with housing?

Housing for the elderly is based on the differences in the life cycle of the housing and the remaining life of the elderly residents. The huge real estate resources owned, especially the remaining value of the house after people die, can be realized in advance through the integration of certain financial or non-financial mechanisms, and the flow of value can be realized for the elderly during the rest of their lives. A long-term, continuous, stable and even lifelong cash inflow

Required conditions for housing for retirement

Owning property rights

Owning one's own home and fully owning it. Property rights. Elderly care families must have full ownership of the house they live in before they have the right and possibility to sell, rent or transfer the house.

Independent housing

In the housing-based pension model, this model can only work if the elderly parents and their children live separately. Otherwise, after the death of the elderly, the children will have nowhere to live.

The family is in a moderate position

<. p>When the elderly have a strong economic and material foundation, they will not and do not need to consider using real estate for their retirement. However, if the elderly have poor economic and material conditions, or do not have their own independent house, or the value of the house is too low, it will be difficult for them to do so. Expect to use it as capital for your retirement.

Land prices are high

Old people live in cities or suburbs, especially in prosperous cities or suburbs with rapid economic growth, and the value of their homes is very high. , and with continuous appreciation, it is relatively easy to realize and transfer housing, which is suitable for reverse mortgage loans for retirement. However, if the housing is located in rural areas or underdeveloped areas with slow economic development and little appreciation, it will be difficult to do so due to its low value. It will be difficult to apply this model for cash out. It should be emphasized that the reverse mortgage loan pension method is especially suitable for urban elderly people with independent property rights, no direct heirs, and middle-income residents.

Misconceptions about housing for retirement

Misunderstanding 1: "Reverse mortgage" is the entire source of pension

Du Peng, director of the Institute of Gerontology at Renmin University of China, believes that now we have entered the Most of the elderly people do not buy commercial housing, but mostly live in units. The people who are truly qualified to live in housing are the middle-aged people in their 40s and 50s who have purchased commercial housing, followed by those from Beijing, Shanghai, Nanjing, and Nanjing. Judging from the practice in cities such as Chongqing, most "reverse mortgages" require that the house be more than 60 square meters and that the elderly be over 60 years old. These two conditions have actually limited the number of elderly people suitable for this pension model to a relative number. In a small circle, in fact, for the elderly in this range, the funds provided by "reverse mortgage" compensation are not the main source of pensions.

Misunderstanding 2: "Reverse mortgage" can exempt alimony obligations

Meng Xiaosu, president of China Real Estate Development Group, believes that the housing pension model only solves the problem of who pays the pension, not The question of who will take care of the elderly. Where to care for the elderly, how to spend their old age, who will take care of their daily life, and who will relieve their loneliness, these core issues plaguing China's aging society cannot be properly solved by "reverse mortgage". "Reverse mortgage" can at most compensate for the pension, but it cannot exempt the children from the obligation to support them.

Misunderstanding 3: "Retirement for the elderly" changes from "raising children for the elderly"

Du Peng, director of the Institute of Gerontology at Renmin University of China, said that the common practice of the Chinese elderly is to invest their property in passed on to children.

This approach is based on a concept of family function. A concept that has been passed down for thousands of years cannot be easily overturned by a new model of elderly care.

"Housing for the elderly" is originally an imported product. From its transformation in Western countries, Singapore and my country, we can see that China's inherent family functional concepts have played a powerful role. In the United States, there is a model of “housing for retirement” in which retirees can mortgage their homes and obtain a certain amount of loans from banks every year as living allowances. After the death of the couple, the house is first used to cover bank loans and interest, and any remaining money is left to be inherited by the children. Although this also involves the issue of inheritance for children, it is completely different from Chinese parents "leaving" houses to their children for free.

Misunderstanding 4: Emphasis on concept change over operational difficulty

Jiao Yikuan, general manager of Great Wall Life Insurance Beijing Branch, said that there has never been a precedent for "reverse mortgage" in China, and it requires professional Special development is carried out after individual evaluation and cannot be completed in a short time. The most troublesome issue is the policy level. Financial mixing is not allowed in China, so insurance companies are not allowed to do reverse mortgage business.

The above is the relevant content about what it means to use housing for retirement. I hope it can be helpful to everyone!