Actuarial Simulation And Demonstration Research On Reverse Annuity Mortgage

Since social security system has been founded, people have taken benefits from the prevalent system. They get the personal revenue reliably and the society develops steadily. As a part of social security system, old-age security is paid more attention by the society. Not only everyone will experience from the young to the aged, but also they long for comfortable lives when they are old. However, being short of cash, many old people are the cash-poor, yet the asset-rich. Their homes have appreciated faster than inflation, while they often lack of cash to keep up with the cost of living, such as medical treatment, health care, and so on. Reverse annuity mortgage is an optional model of ode-aged security, which is specifically suited to the old homeowners who need cash. The reverse annuity mortgage model allows the old homeowners to convert their home equity into cash instead of selling their houses by some financial institutions which provides payments from the lender to the homeowner.This paper provides a framework of reverse annuity mortgage, describing the definition, characteristics, and international experiences. It also analyzes the feasibility and risk of reverse annuity mortgage. According to the survey in Xiamen City, it presents the project to develop reverse annuity mortgage with quantitative analysis, normal and empirical research.The characteristics and innovations of the paper compose of three respects. Firstly, it presents the theory of reverse annuity mortgage systematically. Secondly, it adopts cross-subject research and uses different analyzing methods. Thirdly, it puts forward the feasibility policy strategy of RAM.