Analysis of Potential Marriage Reverse Annuity Contracts Benefits in Slovak Republic
Agnieszka Marciniuk , Emilia Zimkova
AbstractDemographic trends in Europe reveal that the pension funding gap will become one of the key social issues in coming years. On the other hand, many of these people hold a large amount of wealth in their property which, being reasonably utilized by equity release products, could help them cover their needs. People can surrender their real estate to a company interested in the acquisition of their property in exchange for the whole life monthly benefits. The aim of the contribution is to analyze the potential benefits of marriage reverse annuity contracts in the Slovak Republic by the use of the Svensson model function, considering the reversionary annuity and the real value of estate in different cities. The real value of the properties is determined by the place where spouses live and has significant influence on the amount of the benefit. While in many countries the equity release products have been offered to clients for dozens years, a product of this nature has not been established so far in the Slovak Republic. Hopefully, this contribution might initiate discussions on the introduction of similar equity release products market in the Slovak Republic as well
|Publication size in sheets||0.5|
|Book||Hronova Stanislava, Ptackova Veronika, Safr Karel, Vltavska Kristyna (eds.): Applications of Mathematics and Statistics in Economics 2018, Conference Proceedings. Full text papers, 2018, University of Economics, Prague, Oeconomica Publishing House, ISBN 9788024522777, 360 p.|
|Keywords in English||reverse annuity contract, reverse mortgage, reversionary annuity|
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