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

See all articles by Jori Arts

Jori Arts

PGB Pensioendiensten

Eduard H.M. Ponds

Algemene Pensioen Groep (APG); Tilburg University - Department of Economics; Netspar; Tilburg University - Center for Economic Research (CentER)

Date Written: January 15, 2016

Abstract

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

Arts, Jori and Ponds, Eduard H.M., The Need for Flexible Take-Ups of Home Equity and Pension Wealth in Retirement (January 15, 2016). Netspar Discussion Paper No. 01/2016-005. Available at SSRN: https://ssrn.com/abstract=2727781 or http://dx.doi.org/10.2139/ssrn.2727781

Jori Arts

PGB Pensioendiensten ( email )

Zwaansvliet 3
Amsterdam, 1081 AP
Netherlands

Eduard H.M. Ponds (Contact Author)

Algemene Pensioen Groep (APG) ( email )

P.O. Box 75283
Amsterdam, 1070 AG
Netherlands

Tilburg University - Department of Economics

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tilburg University - Center for Economic Research (CentER) ( email )

Tilburg

Register to save articles to
your library

Register

Paper statistics

Downloads
54
Abstract Views
335
rank
373,366
PlumX Metrics