The Need for Flexible Take-Ups of Home Equity and Pension Wealth in Retirement
36 Pages Posted: 5 Feb 2016 Last revised: 20 Feb 2016
Date Written: January 15, 2016
This paper analyzes for the Netherlands the need to introduce flexible take-ups of home equity and pension wealth, complementary to recent reforms in Dutch pensions and mortgages. The young may gain from supplementing a possible pension shortfall with additional retirement income from reverse mortgage contracts. The elderly may benefit of the innovation of partial lump sum of accrued pension rights in order to partly redeem mortgage debt, whilst maintaining an adequate net replacement rate from pensions.
Keywords: pensions, home equity, reversed mortgages, lump sum
JEL Classification: H55
Suggested Citation: Suggested Citation