Study On Aged Mode In The Way Of Reverse Mortgage Loan In China

"Getting old before being Rich" is a remarkable feature against the rapid aging population in China. The fundamental bottleneck factor that constrains the senior citizens to spend the remaining years in comfort is the lack of stable economic foundation. With self-pension being weak, family pension functions degenerating ,during the transition period that the social security is continuous improved, the burden of individuals, families and the state's has been increased caused by accelerated aging population . The effective method for relieving endowment stress is to consolidate the economic foundation maintaining the normal life of senior citizens in the way of exploring new pension model on the basis of improving the current endowment way. Reverse Mortgage Loan as a conversion from real estate into cash flow brings us new ideas to solve the problem of supporting aged population.This paper introduces the reverse mortgage's definition, characteristics and its difference from traditional methods and aging population theory, combined with the U.S. reverse mortgage market situation, analyzes the feasibility and necessity of introducing this model for aging population, and the potential economic and social benefits .In the early stage of developing Reverse Mortgage, it must be faced a variety of institutional or attitudinal barriers. With reference to the successful model going through by U.S., combing with the practice and quest in the endowment model of Reverse Mortgage, the suggestion on developing endowment model of Reverse Mortgaging China is put forward.