Home Equity Pension Insurance Model

There is an obvious characteristic of population aging in China—"aging without richness", China must face a serious problem of elderly funding shortage decades later. House has double properties: habitation and investment, which also the main wealth of elderly households. But during the process of aging, house just only plays the function of habitation, Its asset characteristic isn't utilized sufficiently. The aim of this dissertation is establish a new funding model—Home Equity Pension Insurance Model (HEPI), under which elderly households can continue to live their homes and turn home equity into cash. This could release the burden of country, families, children to support of the elderly people, and make up the shortcoming of current elderly security system.There are five main sections in this dissertation: 1) Background. In illustrating the necessity of implementing HEPI, we focus our efforts mainly on these factors, such as population aging, current pension plight, poverty of urban senior citizens, and the transformation of family structure. 2) Basal theories of HEPI. In this section, I will simply illustrate the relationships between HEPI and Life Circle Theory, House Property Rights Theory, house asset characteristic etc. 3) Foreign experiences regarding the carry-out of HEPI. HECM of America, and French Viager system will be introduced. 4) Fundamental operating mode designed for HEPI. This section is the most significant in this dissertation. In this part, I will fully exemplify the different aspects with respect to the operating process of HEPI. 5) Positive effects of HEPI implementation. From macro and micro view, we will comment on the influence of HEPI to main involving parties and related departments.