PERCEPTION OF SENIOR CITIZEN RESPONDENTS AS TO REVERSE MORTGAGE SCHEME

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "PERCEPTION OF SENIOR CITIZEN RESPONDENTS AS TO REVERSE MORTGAGE SCHEME"

Transcription

1 CHAPTER- V PERCEPTION OF SENIOR CITIZEN RESPONDENTS AS TO REVERSE MORTGAGE SCHEME 5.1 Introduction The present study intended to investigate the senior citizen s retirement planning and their perception about reverse mortgage as a significant option for financing life after retirement. In this context it looked into senior citizens attitude to debt, financial independence, desire to leave an inheritance, knowledge of different options of financing retirement, awareness of reverse mortgage option, the likelihood of using reverse mortgage and reaction of family members to using this option. It also looked into, whether eligible user s demographic characteristics in terms of geographical location, gender, sex, household status, present income source, educational background, number of children and present annual income are significant in relation to the important reverse mortgage related issues. It also focussed on the apprehensions of eligible borrowers and lenders regarding reverse mortgage scheme and their suggestions to make it widely accepted retirement financing option. To achieve the purpose of the study, survey of the eligible senior citizens and officers of the lending institutions was conducted using questionnaire and personal interviews. This chapter based on the analysis of survey results, reports the senior citizen respondents perspective as to reverse mortgage loan scheme. The present chapter has been divided into six sections. Section I is about introduction, the objectives covered and organisation of the chapter. Section II is concerned with presenting the demographic characters of the survey respondents. Section III is devoted to reporting of descriptive statistics. Section IV is devoted to presentation and analysis of quantitative results for hypothesis testing. Section V reports the perception of senior citizens respondents on reverse mortgage loan facility. Section VI provides a summary of the chapter. 127

2 5.2 Demographic Profile of Survey Respondents In the questionnaire used for the study there were seven questions whose objective was to establish the socio-economic profile of the respondents. These questions were about respondent s gender, region, household status, number of children, education level, current sources of income and approximate annual income. The present section explains in detail the information about the demographic profile of the respondents Classification of Respondents on the Basis of Gender All the 196 respondents answered the question about their gender. As displayed in Figure 5.1 about 84 percent of those responding were males and 16 percent were females. Figure 5.1: Classification of Respondents on the Basis of Gender Classification of Respondents on the Basis of Region As can be seen in the Figure 5.2 below all the 196 survey respondents almost equally represented each of the survey regions. Out of the total, 51 respondents (26%) each were from Delhi and NCR, 48 respondents (25%) were from Chandigarh and 46 (23%) were from Jaipur. 128

3 Figure 5.2: Classification of Respondents on the Basis of Region Classification of Respondents on the Basis of Household Status Figure 5.3 shows, that as per the sample surveyed, out of the 196 respondents 54 percent lived with spouse and children followed by 34 percent who lived with their spouse, another 10 percent lived with their children only as their spouse is dead and 2 percent lived alone on their own. Source: Primary Data Figure 5.3: Classification of Respondents on the Basis of Household Status 129

4 5.2.4 Classification of Respondents on the Basis of Number of children As per the sample surveyed, 48 percent of respondents have two children, 34 percent have three or more children, 15 percent have one child and finally, 3 percent have none (Figure 5.4). All 196 respondents answered this question. Figure 5.4: Classification of Respondents on the Basis of Number of children Classification of Respondents on the Basis of Level of Education As per the sample surveyed, of 195 respondents to the question about education, 39 percent studied up to post graduation level or higher, 30 percent completed graduation level, 6 percent studied up to higher secondary level, 7 percent had completed matriculation level and finally 18 percent were professionally qualified (Figure 5.5) Figure 5.5: Classification of Respondents on the Basis of Level of Education 130

5 5.2.6 Classification of Respondents on the Basis of Current Sources of Income Table 5.1 and Figure 5.6 show that as per sample surveyed, 82 respondents (42%) reported income from working, 120 respondents (61%) reported that they are getting pension, 84 respondents (42%) reported income from investment in financial assets, 33 respondents (17%) indicated that their children contribute towards their maintenance. Finally 11 respondents (5%) indicated income from other sources. Respondents had the choice to select more than one option in this question. Many respondents reported income from multiple sources. Table 5.1: Classification of Respondents on the Basis of Current Sources of Income Respondent Current Income Source Working Pension Investments Children Other Sources Total Figure 5.6: Classification of Respondents on the basis of current income sources 131

6 5.2.7 Classification of Respondents on the Basis of approximate Annual Income As per the sample surveyed 192 respondents answered the question about the current annual income. Annual income varied considerably. As Figure 5.7 displays, 8 percent of respondents earn less than Rs.1,00,000 annually, 20 percent earn between Rs.1,00,000 to less than Rs. 2,00,000, 43 percent earn between Rs.2,00,000 to less than Rs. 5,00,000, 20 percent earn between Rs.5,00,000 to less than Rs. 10,00,000 and finally 9 percent earn Rs.10,00,000 and above.. Figure 5.7: Classification of Respondents on the Basis of Annual Income 5.3 Reporting of Descriptive Statistics Through the questionnaire, an attempt was made to obtain data on a number of important issues that are linked to reverse mortgage and retirement planning. These issues were senior citizens: Retirement planning during working life. Level of confidence to meet post retirement needs. Desire to leave an inheritance for children. Family member s dependence on respondent. Attitude to debt. 132

7 Desire for financial independence. Current financial situation. Knowledge of financial options for a comfortable retired life. Level of awareness about reverse mortgage. Source of information about reverse mortgage. Reasons for not using reverse mortgage. Likelihood of using the reverse mortgage in future. Apprehensions about the scheme. Reaction of family members to the use of this loan facility. Possible use of reverse mortgage money. Preference for mode of disbursement. Preference for interest rate regime. Assessment about the reasons for the low popularity of the scheme. The present section will report the frequency responses to these questions. Detailed analysis of survey responses to these questions may help in understanding the knowledge and perception of senior citizens about reverse mortgage as a viable option for financing post retirement needs Senior Citizens Retirement Planning Senior citizen retirement planning during working life is very important for ensuring a comfortable retired life. The findings of the survey regarding this aspect have been presented in Table 5.2 below. Table 5.2: Senior Citizens Retirement Planning During their Working Life Response Frequency Percentage Yes No Total Source: Primary Data 133

8 It is generally believed that during their working life people do not plan for their retirement. But as can be seen in Table 5.2 our survey results depict that a sizeable majority (64%) of senior citizens planned for their retirement during their working life. One possible reason for this may be that our survey respondents included only those senior citizens who are residing in their own self acquired residential house property. It may not be possible to acquire a residential property during one s working life without some serious financial planning Senior Citizens Level of Confidence to Meet Post Retirement Needs. As displayed in Table 5.3, most survey respondents were either very confident (37.6%) or somewhat confident (39.7%) regarding their regular monthly cash inflows meeting their post retirement needs. Given this high level of confidence, retired senior citizens may not show interest in reverse mortgage scheme. This is because the scheme enables the seniors to supplement their post retirement cash flows by mortgaging their self occupied house property. Table 5.3: Senior Citizens Level of Confidence on Retirement Regarding their Monthly Income Meeting their Post Retirement Needs Response Frequency Percentage Very confident Somewhat confident Little confidence No confidence Total Senior Citizens Desire to leave an inheritance for children Out of 193 respondents who answered the question about bequest motive (Table 5.4), more than half (57%) were of the view that this is to be done if the children are caring. Interestingly, about a quarter of respondents (23%) were of the view that they would like to leave behind the property for the children, even if their children do not take care of them. Such a response was not surprising given our socio cultural setup in 134

9 which our parents are highly protective of their children. As per our survey, therefore bequest motive was found to be highly strong. This may be the main reason for a poor demand for reverse mortgage. Seniors fear that use of this option may not permit them to leave the house property for their children. Lately, many senior citizens who had earlier availed of this loan facility had paid back the loan amount to free their property from mortgage. Table 5.4: Senior Citizens Bequest Motive (Desire to leave behind house property for their children) Response Frequency Percentage Yes, if the children are caring Yes, even if they are not caring No, if the children are not caring Any other answer Total Source: Primary Data Family Members Dependence on Senior Citizen Respondents Table 5.5 shows that 68 percent of the survey respondents do not have any family member requiring financial support. This means that such category of elders can make use of reverse mortgage to draw liquidity out of their residential house property. Table 5.5: Family Members Financially Dependent on Respondent Response Frequency Percentage Yes No Total Respondents liking to take debt in old age As can be observed in Table 5.6, about 75 percent of survey respondents indicated that they are not comfortable in getting into debt in their present age. As reverse mortgage is seen as a form of debt arrangement, most of them feel reluctant to use this 135

10 novel facility that has been created by the government to ease their post retirement life. This reluctance to assume debt may be the reason for a poor response to the reverse mortgage scheme. Table 5.6: Respondents Comfort in Getting into Debt in Old Age Response Frequency Percentage Yes No Not sure Total Respondents Desire for Financial Independence The survey respondents were asked in the questionnaire to assign points on a scale of 1-7 about how strongly they feel about being financially independent in old age (where 7 points were to be assigned for a very strong feeling and 1 point for a very weak feeling). The statistical results on this given in Table 5.7 shows that desire for financial independence is very strong among the survey respondents with an average score of 5.38 points. If the senior citizens are short of cash flows in old age and at the same time wish to be financially independent, they can look into reverse mortgage as an additional option. Table 5.7: Respondents Desire for Financial Independence in Old Age Descriptive Statistics Number of Respondents (N) Mean Standard Error Standard Deviation Respondents Current Financial Situation As displayed in Table 5.8 most of the respondents (88%) possess self acquired self occupied residential house property. This means they are all candidate for reverse mortgage scheme. 136

11 Table 5.8: Worksheet to Assess the Respondents Current Financial Situation Financial Issues Faced by Respondents Response Frequency Percentage Do you feel concerned about your ability to financially handle a medical emergency? Do you find it difficult to meet your necessary living expenses with each passing month? Do you want to supplement your income during retirement years? Do you rely on family members for financial support? Is there some necessary purchase that you have been delaying due to lack of funds? Is your home repair and renovation long overdue? Do you have a self acquired, self occupied house property? Yes % No 81 42% Total % Yes 37 19% No % Total % Yes % No 63 33% Total % Yes 44 22% No % Total % Yes 42 21% No % Total % Yes 48 25% No % Total % Yes % No 24 12% Total % In Table 5.8 it is displayed that two- third of respondents want to supplement their income during retirement years. Although they have not shown any interest in reverse mortgage but they are a good candidate for it and must look into it as a viable option to supplement their income post retirement. Fifty eight percent respondents feel concerned about their ability to financially handle a medical emergency. This category may also consider reverse mortgage for a safe and secure future. Responses to the questions on current financial situation suggest that most respondents are good candidates for reverse mortgage. If the apprehensions of the senior citizens are addressed and more information and counselling is provided to them, they may show more interest in this product. 137

12 5.3.8 Respondents Financial Options for a Comfortable Retired Life Table 5.9 shows that only a very insignificant proportion (5.7%) of survey respondents are willing to consider reverse mortgage for a comfortable retired lie. A significant number of survey respondent (about 48%) were willing to consider renting a part of house to generate additional funds for retirement. About 18 percent of respondents were willing to consider financial help from family members for their old age fund requirements. Most senior citizen respondents are not considering reverse mortgage as an option for financing post retirement life. Table 5.9: Respondents Options for Comfortable Retired Life Financial Options Frequency Percentage Selling the house (or part of it) Renting a part of house Financial help from family members Simple mortgage of the house Reverse mortgage Any other Total Respondents Level of Awareness about Reverse Mortgage Table 5.10 shows that survey respondent s awareness about the reverse mortgage scheme is very poor. Of the total respondents, 56 percent have only heard of it but do not know about its detailed features. About a quarter of respondents (24%) had never heard of it and do not know anything about this loan facility. Unless the targeted population is well informed about the scheme, one cannot expect its demand to pick up in a significant way. All out efforts should be made using all channels of communication to improve the awareness of this novel scheme. 138

13 Table 5.10: Level of Awareness about Reverse Mortgage Response Frequency Percentage Full information Heard of it but don t know its details Don't know anything about it Total Respondents Source of Information about Reverse Mortgage Table 5.11 shows that main source of information about reverse mortgage for survey respondent was media (44.4%) in the form of newspaper, magazines, radio, television, internet etc. Another major source was friends and family members (37%). The banks, which were supposed to play a major role in the supply of information and thereby improving awareness about the scheme didn t seem to have done their job. Only about 8 percent of the survey respondents reported getting the information about reverse mortgage from a bank or a housing finance company. Targeted consumers were made aware of the product existence mainly through media. Table 5.11: Source of Information about Reverse Mortgage Source Frequency Percentage Friends and family members Someone who has already taken this loan Media (newspaper, magazines, radio, television, internet etc.) Financial planner or property consultant Bank or housing finance company 13 8 Social groups, old age NGO's, etc Total

14 Respondents Reasons for not Using Reverse Mortgage. Table 5.12 displays that out of 162 survey respondents to this question, 109 (67.3%) indicated that they have sufficient wealth to take care of their post retirement needs and are therefore not interested in reverse mortgage. The second important reason indicated was the likely resistance from the family members to the use of reverse mortgage. Table 5.12: Reasons for not Using Reverse Mortgage Reasons Frequency Percentage Sufficient wealth for post retirement needs Apprehensions about some of product features Resistance from family members Better alternatives to reverse mortgage Any other response Total Respondents Likelihood of Using the Reverse Mortgage in Future Table 5.13 displays that about 41 percent respondents to this question have indicated that they are not interested in reverse mortgage. Only about 12 percent of survey respondents have indicated that they are either very likely or somewhat likely to use reverse mortgage in future. About 47 percent of the respondents appear to be indecisive in the sense that they are either neutral or do not know an answer to this question. Table 5.13: Likelihood of Using the Reverse Mortgage in Future Response Frequency Percentage Very likely Somewhat likely Neutral Not at all Don t know Total

15 Respondents Apprehensions about the Scheme Table 5.14 shows the survey respondents main apprehension about the reverse mortgage scheme. About 31percent of respondents feel that it could lead to increased family tension, 28 percent feel that it could lead to accumulation of debt in old age, 27 percent feel that it creates a possibility of senior citizen losing the home and 11 percent feel that the money made available through reverse mortgage may not be used for the purpose it is intended. Table 5.14: Respondents Main Apprehension about Reverse Mortgage Scheme Response Frequency Percentage Prospect of losing home (home going to lender) Prospect of accumulating debt in old age Possibility of increased family tension Possibility of misusing the money available Any other Total Reaction of Respondents family members to the use of Scheme Table 5.15 reports about the likely reaction of the family members to the use of this loan facility. Only about 10 percent of the respondents feel that their family members are likely to support their decision to go in for reverse mortgage. Forty percent of the survey respondents feel that their family members will strongly disagree to their using reverse mortgage. About half the respondents are not sure about the reaction of their family members. Likely adverse reaction of family members that could lead to increased family tension may be holding back many senior citizens from using reverse mortgage. 141

16 Table 5.15: Reaction of Family Members to the Use of Scheme Response Frequency Percentage Support it Strongly disagree Not sure No legal hiers Total Possible use of Reverse Mortgage Money by Respondents On the question regarding the possible use of reverse mortgage money, respondents were given the choice to select multiple options. Table 5.16 shows that of the 407 options selected by 196 survey respondents, the most favoured option was to use the reverse mortgage money for health care and emergency medical needs (selected by 98 respondents and forming 24% of total responses). The next choice was to use the money to provide financial help to family members (selected by 95 respondents and forming 23% of total responses). Only 18% responses were for the use of money to pay for everyday household expenses. If the senior citizens are likely to use the money for such purposes then reverse mortgage is not for them. The main intent in reverse mortgage scheme is to supplement the inadequate monthly cash flows of the retirees to meet their everyday needs. Table 5.16: How Respondents Would Like to use Reverse Mortgage Money Use of Reverse Mortgage Money Frequency Percentage To pay for everyday household expenses To pay for health care, emergency medical needs To pay for home repair and renovation To pay off some existing debt To provide financial help to family members Total

17 Respondents Preference for mode of Loan Disbursement Table 5.17 shows the preference of survey respondents for various possible modes of loan disbursement under reverse mortgage scheme. About 25 percent of respondents have shown preference for getting the payment in the form of life time annuity. Another 20 percent have selected a choice of getting full eligible loan amount in lump sum. Only about 13 percent of respondents have shown a preference for annuity for a fixed term. About 27 percent respondents have given their preference for getting some amount as lump sum and the rest in the form of annuity. But in this group also most would prefer to get the amount over and above the lump sum in the form of life time annuity (19.66%) rather than term annuity (7.87). Fourteen percent respondents have given their preference for a line of credit, which would permit them to withdraw the money as and when needed and thereby pay interest only on the used loan amount. Table 5.17: Preference for mode of Loan Disbursement Mode of payment Frequency Percentage Lump sum Annuity for a term Life time annuity Some lump sum and rest annuity for a term Some lump sum and rest annuity for life Line of credit Total Respondents Preference for Interest Rate Regime. Table 5.18 displays survey respondent s preference for interest rate regime, if they were to go in for reverse mortgage. Majority of respondents (58.6%) have indicated that they would like the interest rate to be fixed for the entire term if they were to take the reverse mortgage loan. 143

18 Table 5.18: Respondents Preference for Interest Rate Regime Response Frequency Percentage Fixed rate for the entire term Floating rate for the entire term Fixed rate initially for some time and then floating rate Total Reverse Mortgage features disliked by Respondents On this question, survey respondents were given the choice to select multiple options. Table 5.19 displays that of the 226 responses, the features of reverse mortgage scheme most disliked were, high initial costs (25.7% of total responses), low loan to value ratio (22.6% of total responses), ceiling on the maximum amount of loan (17.7% of total responses), initial hassles in getting the loan (15.9% of all responses) and restrictions on the type of property that can be mortgaged (9.7% of total responses). Table 5.19: Features of Reverse Mortgage Scheme Disliked by Respondents Features Frequency Percentage High initial costs Low loan to value ratio Ceiling on maximum amount of loan Ceiling on lump sum one can get Type of property that can be mortgaged Initial hassles in getting the loan Any other Total

19 5.4 Inferential Statistics: Results of Hypothesis Testing To accomplish the objectives of the study, a number of hypotheses were framed for empirical testing. These null hypotheses to be tested were: Ho1 : Respondents demographic features are insignificant in senior citizens retirement planning early during their working life. Ho2 : Respondents demographic features are insignificant in senior citizens desire to leave the house property for their children. Ho3 : Respondents demographic features are insignificant in senior citizens desire for independence in financial matters after retirement. Ho4 : Respondents demographic features are insignificant in senior citizens desire to take debt in old age. Ho5 : Respondents demographic features are insignificant in the likelihood of Senior citizens using the reverse mortgage loan facility. Ho6 : Respondents demographic features are insignificant in so far as the reaction of family members to the use of this loan facility is concerned. The present section is devoted to presentation and analysis of results on testing of the listed hypotheses. In order to test these hypotheses, cross tabulation with chi square test was resorted to. Each of the hypotheses is cascaded down to a number of sub-hypothesis to focus on testing the significance of each of the respondent s demographic factor (gender, region, education level, household status, size of family, annual income and present source of income). Statistical results derived with the aid of SPSS software, on the testing of hypothesis framed for the study are presented below: Significance of Demographic Factors in Retirement Planning The null hypothesis framed for testing in this context was: Ho1: Respondents demographic features (like gender, household status, income level, education level, geographical location and family size) are insignificant in senior citizens retirement planning early during their working life. 145

20 It is already displayed in Table 5.2 that majority of respondents (64%) plan for their retirement early during their working life. Now we attempt to discover, whether respondent s demographic factors are significant in their retirement planning. The chisquare values to test the significance of each of the demographic factor in relation to respondents retirement planning are shown in Table 5.20 Table 5.20: Testing Significance of Respondents Demographic Factors in Retirement Planning Demographic Factors Pearson Chi- Square Value Df Asymp.Sig. (2-sided) Decision at 5% level of Significance Gender Accept Region Accept Household Status Accept Number of Children Accept Education Level Accept Income Source Income from working Pension Income Investment Income Children Contribute Any Other Source Accept Accept Accept Reject Accept Annual Income Accept Table 5.20 shows that most of the demographic factors analysed above were found to be statistically insignificant in relation to senior citizens retirement planning during 146

21 working life. This means that retirement planning is independent of most of demographic factors analysed. The first null hypothesis that demographic features are insignificant in retirement planning is therefore accepted for all demographic factors analysed except children contribution. Children financial contribution is found to be a significant factor in senior citizens retirement planning. To focus on this significant relationship, values on crosstab between retirement planning and children contribution are displayed in Table It can be observed in the table that when children do not contribute towards maintenance, 67% of such respondents reported doing retirement planning. Where children contribute towards maintenance, only 49% of such respondents reported doing retirement planning. Table 5.21: Cross tab between Retirement Planning and Children Financial Contribution Retirement Planning Children Contribute Yes No Total Yes No Total Count % within children contribution 49% 67% 64% Count % within children contribution 51% 33% 36% Count % within children contribution 100% 100% 100% Significance of Demographic Factors in Bequest Motive The null hypothesis framed for testing in this context was: Ho2: Respondents demographic features are insignificant in senior citizens desire to leave the house property for their children. The chi-square values to test the significance of each of the demographic factor in relation to respondent s bequest motive are shown in Table

22 Table 5.22: Testing Significance of Demographic Factors in Respondents Bequest Motive Demographic Factors Pearson Chi- Square Value Df Asymp.Sig. (2-sided) Decision at 5% Level of Significance Gender Accept Region Reject Household Status Accept Number of Children Reject Education Level Accept Income from working Accept Income Source Pension Income Accept Investment Income Accept Children Contribute Accept Any Other Source Accept Annual Income Accept As displayed in Table 5.22, respondent s geographical region and size of family in terms of number of children are found to be significant in their bequest motive. This means that there are significant differences among the regions surveyed in terms of senior citizen respondent s bequest motive. Also respondent s number of children is also significant in their bequest motive. All other demographic factors analysed were found to be insignificant in the bequest motive of senior citizens. The second null hypothesis is rejected in case of two demographic factors. These were respondents region and size of family in terms of number of respondents children. The respondents bequest motive is found to be significantly associated with these factors. To focus on the significant relationships, values on crosstab between bequest motive and region are displayed in Table 5.23 and values on crosstab between bequest motive and number of children are shown in Table

23 It can be seen in table 5.23 that in Delhi and NCR regions about two-third of respondents wish to leave their house property for children if they are caring. The corresponding proportion for Jaipur and Chandigarh regions is about half of respondents. In Chandigarh region, 40% respondents expressed desire to bequeath property to children even if they do not take care of them. In other regions the corresponding percentage was 20 or less. Table 5.23: Cross tab between bequest motive and region Should Parents Leave Behind Property for Children Region Delhi NCR Jaipur Chandigarh Total Yes if children are caring Yes even if children are not caring No if children are not caring Any other answer Total Count % within region 63% 67% 54% 44% 57% Count % within region 19% 14% 20% 40% 23% Count % within region 10% 17% 20% 10% 14% Count % within region 8% 2% 6% 6% 6% Count % within region 100% 100% 100% 100% 100% In Table 5.24 one can observe the significant relation between number of children and bequest motive. It can be observed in the table that when number of children were two or more, respondents in excess of 60% expressed the desire to leave their house property for children if they are caring. When number of children were either nil or one, only about one third of respondents expressed desire to bequeath property to the children, if they are caring. 39% of respondents with one child do not wish to 149

24 bequeath the property to non caring child. Only about 10% of respondents with two or more children, do not wish to bequeath the property to children, if they are non caring. Table 5.24: Cross tab between bequest motive and number of children Should Parents Leave Behind Property for Children Number of Children None or more Total Yes if children are caring Yes even if children are not caring No if children are not caring Any other answer Total count % within number of children 33% 32% 61% 64% 57% count % within number of children 33% 25% 27% 15% 23% count % within number of children 0% 39% 10% 12% 14% count % within number of children 33% 4% 2% 9% 6% count % within number of children 100% 100% 100% 100% 100% Significance of Demographic Factors in Desire for Financial Independence The null hypothesis framed for testing in this context was: Ho3: Respondents demographic features are insignificant in senior citizens desire for independence in financial matters after retirement. The chi-square values to test the significance of each of the demographic factor in relation to respondent s desire for financial independence are shown in Table

25 Table 5.25: Testing Significance of Respondents Demographic Factors in desire for Financial Independence Demographic Factors Pearson Chi- Square Value Df Asymp.Sig. (2-sided) Decision at 5% Level of Sigificance Gender Accept Region Reject Household Status Accept Number of Children Accept Education Level Reject Income from working Accept Income Source Pension Income Accept Investment Income Reject Children Contribute Accept Any Other Source Accept Annual Income Accept Among all demographic factors considered, respondents geographical location, education level and income from investments were found to be statistically significant in so far as the respondent s desire for financial independence is concerned. The rest of respondents demographic factors analysed were found to be insignificant in relation to respondent s desire for financial independence. The third null hypothesis, that respondents demographic features are insignificant in senior citizens desire for financial independence is accepted in case of respondents 151

26 gender, their household status, number of children their current source of income except income from investments and their annual income. The third null hypothesis, that respondents demographic features are insignificant in senior citizens desire for financial independence is rejected in case of three demographic factors. These were respondents region, size of family in terms of number of respondent s children and income from investments. The respondents desire for financial independence is found to be significantly associated with these factors. A number of cross-tab were analysed concerning significance of demographic factors in senior citizens desire for financial independence. These crosstabs reveal some important information that is otherwise lost in aggregate analysis. Table 5.26: Crosstab between Desire for Financial independence and Gender Respondents Rating of desire for Financial Independence Respondents Gender No reply Male Female Total Total Table 5.26 shows values on cross tab between desire for financial independence and respondent s gender. It brings into focus an important point, that male respondents exhibit a strong desire for financial independence as compared to female respondents. 152

27 Table 5.27: Crosstab on Desire for Financial Independence v/s Geographical Region Respondents Rating of desire for Financial Independence Geographical Region Delhi NCR Jaipur Chandigarh Total Total The cross tab (Table 5.27) on desire for financial independence and respondents geographical region clearly points out that survey respondents from Delhi and NCR exhibit a strong desire for financial independence as compared to respondents from Jaipur and Chandigarh. Table 5.28: Crosstab on Desire for Financial Independence v/s Level of Education Rating of desire for Financial Independence Matric Higher Secondary Respondents Education Level Graduate P.G. Professional Total Total

28 The cross tab (Table 5.28) on desire for financial independence and respondents education level clearly shows that respondents with a higher education level show a much stronger desire for financial independence as compared to respondents who are less educated. Table 5.29: Crosstab on Desire for Financial independence v/s Respondents Investments Income Respondents Rating of desire for Financial Independence Respondents Investment Income Yes No Total Total The cross tab on desire for financial independence and income from investments (Table 5.29) shows that respondents reporting income from investments show a strong desire for financial independence. More than 40% respondents (33 out of 79) from this group assigned maximum rating of seven to desire for financial independence in old age. 154

29 Table 5.30: Crosstab on Desire for Financial independence v/s Children Contribution Respondents Rating of desire for Financial Independence Respondents Children Contribution Yes No Total Total The cross tab on respondents desire for financial independence and children contribution towards their maintenance (Table 5.30) shows that when the children are not contributing, the desire for financial independence is strong Significance of Demographic Factors in Desire to Take Debt in Old Age The null hypothesis framed for testing in this context was: Ho4: Respondents demographic features are insignificant in senior citizens desire to take debt in old age. The chi-square values to test the significance of each of the demographic factor in relation to respondent s desire to take debt in old age are shown in Table As displayed in Table 5.31, respondents gender, pension income and income from other sources were found to be significant demographic factors in the respondents desire to take debt in old age. This means that there are significant differences among the males 155

30 and females in so far as the desire to take debt in old age is concerned. Also there are significant differences among the respondent s receiving pension and those not receiving pension in terms of their desire to take debt in old age. Respondents income from other sources was also found to be significant in relation to the desire to take debt in old age. Table 5.31: Testing Significance of Demographic Factors in Respondents Desire to Take Debt in Old Age Demographic Factors Pearson Chi- Square Value Df Asymp.Sig. (2-sided) Decision at 5% Level of Significance Gender Reject Region Accept Household Status Accept Number of Children Accept Education Level Accept Income from working Accept Income Source Pension Income Reject Investment Income Accept Children Contribute Accept Any Other Source Reject Annual Income Accept To focus on the significant relationships between demographic factors and respondents desire to take debt, relevant crosstab values are reported in Table 5.32, 5.33 and

31 Table 5.32: Cross tab between Desire to take Debt and Respondents Gender Desire to take Debt Male Gender Female Total Yes No Not Sure Total Count % within gender 13% 13% 13% Count % within gender 77% 64% 75% Count % within gender 10% 23% 12% Count % within gender 100% 100% 100% The crosstab on desire to take debt and respondents gender (Table 5.32) shows that 77% of males do not want to take debt in old age. The corresponding percentage for females is 64%. Among the females 23% were not sure about their desire to take debt in old age. The corresponding percentage for males was 10%. This is in keeping with the general indecisiveness of females in many matters. Table 5.33: Cross tab between Desire to take Debt and Income from Pension Desire to take Debt Pension Income Yes No Total Yes No Not Sure Total Count % within pension income 7% 24% 14% Count % within pension income 81% 64% 74% Count % within pension income 12% 12% 12% Count % within pension income 100% 100% 100% 157

32 The crosstab on desire to take debt and respondents pension income (Table 5.33) shows that respondents having pension income are not willing to take debt in old age (81% of respondents having pension income). In comparison to this 64% of non pension receiving respondents are not willing to take debt in old age. Those desirous of taking debt represent 7% of the respondents from pension receiving category as compared to 24% of the respondents from non pension receiving category. Respondents in general do not like to take debt in old age but their pension is a significant factor in this decision. Table 5.34: Cross tab between Desire to take Debt and Income from other Sources Desire to take Debt Yes No Not Sure Total Income from other sources Count % within income from other sources Yes No Total 31% 13% 14% Count % within income from other sources 38% 77% 74% Count % within income from other sources 31% 10% 12% Count % within income from other sources 100% 100% 100% The crosstab on desire to take debt and respondents income from other sources (Table 5.34) shows that 38% of the respondents having income from other sources are not willing to take debt. The corresponding percentage for those having no income from other sources is 77. The fourth null hypothesis that demographic features are insignificant in senior citizens desire to take debt in old age is accepted with regard to region, household status, number of children, education level, income from working, investment income, children contribution and respondents annual income. The desire to take debt is therefore found to be independent of these demographic factors. 158

33 The fourth null hypothesis that demographic features are insignificant in senior citizens desire to take debt in old age is rejected with regard to gender, income from pension and income from other sources. The desire to take debt in old age is therefore not independent of these factors Significance of Demographic Factors in Likelihood of Respondents Using Reverse Mortgage Loan Facility The null hypothesis framed for testing in this context was: Ho5 : Respondents demographic features are insignificant in the likelihood of senior citizens using the reverse mortgage loan facility. The chi-square values to test the significance of each of the demographic factor in the likelihood of senior citizens using the reverse mortgage loan facility are shown in Table 5.35 Table 5.35: Testing Significance of Demographic Factors in Likelihood of Respondents Using Reverse Mortgage Loan Facility Demographic Factors Pearson Chi- Square Value df Asymp.Sig. (2-sided) Decision at 5% Level of Significance Gender Accept Region Accept Household Status Reject Number of Children Accept Education Level Accept Income from working Accept Income Source Pension Income Accept Investment Income Reject Children Contribute Reject Any Other Source Accept Annual Income Reject 159

34 As displayed in Table 5.35, significant relationship is found between: i. Respondents household status and likelihood of respondents using the reverse mortgage loan facility. ii. iii. iv. Income from investments and likelihood of respondents using the reverse mortgage loan facility. Children contribution towards parents maintenance and likelihood of using the reverse mortgage loan facility. Respondents annual income and likelihood of using the reverse mortgage loan facility. Rest of the demographic factors analysed are found to be insignificant in relation to likelihood of respondents using the reverse mortgage loan facility. To focus on the significant relationships between demographic factors and likelihood of respondents using the reverse mortgage loan facility, relevant crosstab values are reported in Tables 5.36 and The crosstab on likelihood of using the reverse mortgage loan facility and respondents income from investments (Table 5.36) shows that respondents not reporting any income from investments are more likely to use the reverse mortgage loan facility in comparison to respondents reporting income from investments. Table 5.36: Cross tab between Likelihood of Using Reverse Mortgage and Income from Investments Likelihood of using reverse mortgage Income from Investments Yes No Total Very likely Somewhat likely Neutral Not at all Do not know Total

35 The crosstab on likelihood of using the reverse mortgage loan facility and respondent annual income (Table 5.37) shows that respondents having annual income less than rupees two lakh are more likely to use reverse mortgage loan facility in comparison to respondents with annual income of more than two lakh rupees. Table 5.37: Cross tab between Likelihood of Using Reverse Mortgage and Respondents Annual Income Annual Income Likelihood of using RM < Rs. 1 lac Rs.1 lac < Rs. 2 lac Rs.2 lac < Rs. 5 lac Rs.5 lac < Rs. 10 lac > Rs. 10 lac Total Very likely Somewhat likely Neutral Not at all Do not know Total The fifth null hypothesis that demographic features are insignificant in senior citizens likelihood of using the reverse mortgage loan facility is accepted with regard to gender, region, number of children, education level, income from working, pension income and income from other sources. The survey respondents likelihood of using the reverse mortgage loan facility is therefore found to be independent of these demographic factors. The fifth null hypothesis that demographic features are insignificant in senior citizens likelihood of using the reverse mortgage loan facility is rejected with regard to respondents household status, income from investments, children contribution and 161

36 annual income. These factors are found to be statistically significant in senior citizens likelihood of using the reverse mortgage loan facility Significance of Demographic Factors in Respondents Family likely reaction to using Reverse Mortgage Loan Facility The null hypothesis framed for testing in this context was: Ho6: Respondents demographic features are insignificant in so far as the reaction of family members to the use of this loan facility is concerned. The chi-square values to test the significance of each of the demographic factor in the likely reaction of the respondent s family members to the use of reverse mortgage loan facility are shown in Table 5.38 Table 5.38: Testing Significance of Demographic Factors in Respondents Family Likely Reaction to Taking Reverse Mortgage Loan Demographic Factors Pearson Chi- Square Value df Asymp.Sig. (2-sided) Decision at 5% Level of Significance Gender Reject Region Accept Household Status Reject Number of Children Reject Education Level Accept Income from working Accept Income Source Pension Income Reject Investment Income Accept Children Contribute Accept Any Other Source Reject Annual Income Accept 162

37 As displayed in Table 5.38, significant relationship is found between: i. Respondent s gender and the reaction of the family members to this loan. ii. iii. iv. Household status and the reaction of the family members to this loan. Number of children and the reaction of the family members to this loan. Income from pension and the reaction of the family members to this loan. v. Income from other sources and the reaction of the family members to this loan. To focus on some significant relationships between demographic factors and respondents family reaction to the use of reverse mortgage loan facility, crosstab values are reported in Tables 5.39 and 5.40 Table 5.39: Cross tab between Family Reaction to Reverse Mortgage and Respondents Number of Children Number of Children Family Members Reaction None One Two Three or more Total Support it Strongly Disagree Not Sure No Legal Heirs Total Count % within number of children 0% 17% 8% 10% 10% Count % within number of children 0% 31% 39% 49% 40% Count % within number of children 50% 48% 52% 41% 48% Count % within number of children 50% 4% 1% 0% 4% Count % within number of children 100% 100% 100% 100% 100% 163

38 The crosstab on the likely reaction of family members to the use of reverse mortgage loan facility and respondents number of children (Table 5.39) shows when the family size was small (only one child), there was more family support for reverse mortgage loan facility in comparison to when the family size was large. Table 5.40: Cross tab between Family Reaction to Reverse Mortgage and Income from Pension Family Members Reaction Pension Income Yes No Total Suport it Strongly Disagree Not Sure No Legal Heirs Total Count % within pension income 11% 7% 10% Count % within pension income 46% 31% 40% Count % within pension income 39% 61% 48% Count % within pension income 4% 1% 2% Count % within pension income 100% 100% 100% The crosstab on the likely reaction of family members to the use of reverse mortgage loan facility and respondents income from pension (Table 5.40) shows that where respondents are in receipt of pension income, family strongly disagree to the use of reverse mortgage loan facility. In the absence of pension income this disagreement is found to be not that strong. The sixth null hypothesis (Ho6) that demographic features are insignificant in respondents family members likely reaction to the use of reverse mortgage loan facility is accepted with regard to region, education level, income from working, investment income, children contribution and annual income level. No significant relationship was found between these demographic factors and survey respondents family members reaction to the use of reverse mortgage loan facility. 164

CHAPTER- VII ABSTRACT

CHAPTER- VII ABSTRACT CHAPTER- VII ABSTRACT 7.1. Introduction This chapter presents the summary of findings of study under consideration. The study relates to retirement planning of senior citizens and reverse mortgage as a

More information

Profiles and Data Analysis. 5.1 Introduction

Profiles and Data Analysis. 5.1 Introduction Profiles and Data Analysis PROFILES AND DATA ANALYSIS 5.1 Introduction The survey of consumers numbering 617, spread across the three geographical areas, of the state of Kerala, who have given information

More information

Chapter VIII Customers Perception Regarding Health Insurance

Chapter VIII Customers Perception Regarding Health Insurance Chapter VIII Customers Perception Regarding Health Insurance This chapter deals with the analysis of customers perception regarding health insurance and involves its examination at series of stages i.e.

More information

PERCEPTION OF INSTITUTIONAL RESPONDENTS AS TO REVERSE MORTGAGE SCHEME

PERCEPTION OF INSTITUTIONAL RESPONDENTS AS TO REVERSE MORTGAGE SCHEME CHAPTER- VI PERCEPTION OF INSTITUTIONAL RESPONDENTS AS TO REVERSE MORTGAGE SCHEME 6.1 Introduction This section analyses the responses to questions asked by researcher during interviews with officials

More information

PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE..

PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE.. PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE.. Getting into old age without proper financial support can be a very bad experience. No regular incomes, with rising cost of living can make life tough;

More information

Note: The paid up value would be payable only on due maturity of the policy.

Note: The paid up value would be payable only on due maturity of the policy. Section II Question 6 The earning member of a family aged 35 years expects to earn till next 25 years. He expects an annual growth of 8% in his existing net income of Rs. 5 lakh p.a. If he considers an

More information

Key Findings ASIC Report 419. Australian Financial Attitudes and Behaviour Tracker Wave 1: March August 2014

Key Findings ASIC Report 419. Australian Financial Attitudes and Behaviour Tracker Wave 1: March August 2014 ASIC Report 419 Wave 1: March August 2014 Australian Securities and Investments Commission December 2014 Contents INTRODUCTION 3 KEY FINDINGS 9 Financial attitudes 10 Keeping track of finances 11 Planning

More information

Online Survey of Employees Without Workplace Retirement Plans

Online Survey of Employees Without Workplace Retirement Plans Online Survey of Employees Without Workplace Retirement Plans Report of Findings Conducted for: State of California October 2015 Prepared by Greenwald & Associates 2015 1 Table of Contents Methodology

More information

CHAPTER 5 COMPARISON OF DIFFERENT TYPE OF ONLINE ADVERTSIEMENTS. Table: 8 Perceived Usefulness of Different Advertisement Types

CHAPTER 5 COMPARISON OF DIFFERENT TYPE OF ONLINE ADVERTSIEMENTS. Table: 8 Perceived Usefulness of Different Advertisement Types CHAPTER 5 COMPARISON OF DIFFERENT TYPE OF ONLINE ADVERTSIEMENTS 5.1 Descriptive Analysis- Part 3 of Questionnaire Table 8 shows the descriptive statistics of Perceived Usefulness of Banner Ads. The results

More information

SOCIETY OF ACTUARIES THE AMERICAN ACADEMY OF ACTUARIES RETIREMENT PLAN PREFERENCES SURVEY REPORT OF FINDINGS. January 2004

SOCIETY OF ACTUARIES THE AMERICAN ACADEMY OF ACTUARIES RETIREMENT PLAN PREFERENCES SURVEY REPORT OF FINDINGS. January 2004 SOCIETY OF ACTUARIES THE AMERICAN ACADEMY OF ACTUARIES RETIREMENT PLAN PREFERENCES SURVEY REPORT OF FINDINGS January 2004 Mathew Greenwald & Associates, Inc. TABLE OF CONTENTS INTRODUCTION... 1 SETTING

More information

2012 HOUSEHOLD FINANCIAL PLANNING SURVEY

2012 HOUSEHOLD FINANCIAL PLANNING SURVEY 2012 HOUSEHOLD FINANCIAL PLANNING SURVEY A Summary of Key Findings July 23, 2012 Prepared for: Certified Financial Planner Board of Standards, Inc. and the Consumer Federation of America Prepared by: Princeton

More information

Briefing Paper on Equity Release

Briefing Paper on Equity Release COUNCIL of MORTGAGE LENDERS Briefing Paper on Equity Release What is equity release? 1. Equity is the difference between any mortgage you may have and the value of your home. Equity release is a way of

More information

A STUDY OF REVERSE MORTGAGE SCHEME IN INDIA

A STUDY OF REVERSE MORTGAGE SCHEME IN INDIA A SYNOPSIS ON A STUDY OF REVERSE MORTGAGE SCHEME IN INDIA (CASE STUDY OF ICICI BANK) UNDER SUPERVISION OF:.. SUBMITTED BY NAME : ENROLLMENT NO : Submitted in partial fulfillment of the requirements for

More information

(in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore

(in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore Reverse mortgage: Bringing smiles on wrinkled faces (in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore Abstract (2) Archana Mishra, Asst. professor, Presidency

More information

Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys

Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys 2001 Health Care Conference Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys 1 Introduction 1.1 Scope This paper attempts to explain why equity release products have rarely been

More information

HOME EQUITY RELEASE THE FOURTH PILLAR OF RETIREMENT FUNDING. Christine Brownfield

HOME EQUITY RELEASE THE FOURTH PILLAR OF RETIREMENT FUNDING. Christine Brownfield HOME EQUITY RELEASE THE FOURTH PILLAR OF RETIREMENT FUNDING Christine Brownfield 20 th November 2014 Our Retirement Income System The Age Pension Compulsory Superannuation Voluntary Superannuation + Other

More information

A Study On Indian Consumers Attitude Towards SMS Advertising Through Mobile Phones

A Study On Indian Consumers Attitude Towards SMS Advertising Through Mobile Phones 38 Opinion-Volume 1, No. 1, December 2011 A Study On Indian Consumers Attitude Towards SMS Advertising Through Mobile Phones Abstract Ravindra Reddy. T* Dr. Rajyalakshmi N** The rapid increase in the usage

More information

Chadwick s. Equity Release

Chadwick s. Equity Release c Independent Chadwick s Financial Advisers Equity Release Contents Chadwick s IFA Page 4 Equity Release Page 5 Lifetime Mortgages Page 6 Home Reversion Schemes Page 7 Considerations Pages 8&9 Safe Guards

More information

Summary A Contemporary Study of Factors Influencing Urban and Rural Consumers for Buying Different Life Insurance Policies in Haryana.

Summary A Contemporary Study of Factors Influencing Urban and Rural Consumers for Buying Different Life Insurance Policies in Haryana. Summary The topic of research was A Contemporary Study of Factors Influencing Urban and Rural Consumers for Buying Different Life Insurance Policies in Haryana. Summary of the thesis presents an overview

More information

REVERSE MORTGAGE LOAN SCHEME FOR THE SENIOR CITIZENS OF DELHI

REVERSE MORTGAGE LOAN SCHEME FOR THE SENIOR CITIZENS OF DELHI REVERSE MORTGAGE LOAN SCHEME FOR THE SENIOR CITIZENS OF DELHI Concept of Reverse Mortgage Loan (RML). DCHFC proposes to introduce the new scheme of Reverse Mortgage loan announced in the Budget speech

More information

Chapter V. Mutual Funds - Perceptions, Involvement & Policies of Mutual Fund Investors In Hubli-Dharwad - An Analysis

Chapter V. Mutual Funds - Perceptions, Involvement & Policies of Mutual Fund Investors In Hubli-Dharwad - An Analysis Chapter V Mutual Funds - Perceptions, Involvement & Policies of Mutual Fund Investors In Hubli-Dharwad - An Analysis 148 CLASSSIFICATION OF SAMPLES FOR SURVEY : The samples survey was conducted among the

More information

Can assets or bequests fill the pensions gap?

Can assets or bequests fill the pensions gap? Can assets or bequests fill the pensions gap? Karen Rowlingson University of Bath Pensions Commission considered possible role of non-pension wealth in later life Liquidation of assets in later life unlikely

More information

Has the penny DR PPED? Our tenants attitudes towards money and the implications for welfare reform INANCIAL INCLUSION

Has the penny DR PPED? Our tenants attitudes towards money and the implications for welfare reform INANCIAL INCLUSION Has the penny DR PPED? Our tenants attitudes towards money and the implications for welfare reform INANCIAL INCLUSION Contents Foreword from Mark Rogers, Group Chief Executive 4 Executive Summary 5 The

More information

ON :- increased treatment. senior citizen. most of. liquidity for. Page 60

ON :- increased treatment. senior citizen. most of. liquidity for. Page 60 ISSN No. 0974-035X An Indexed Refereed Journal of Higher Education Towards Excellence UGC-ACADEMIC STAFFF COLLEGE, GUJARAT UNIVERSITY, AHMEDABAD, INDIA REVERSEE MORTGAGE Mrs Charmy Lad I NTRODUCTIO ON

More information

The Effective Use of Reverse Mortgages in Retirement

The Effective Use of Reverse Mortgages in Retirement Page 1 of 8 Copyright 2009, Society of Financial Service Professionals All rights reserved. Journal of Financial Service Professionals July 2009 The Effective Use of Reverse Mortgages in Retirement by

More information

for INCOME IN USING YOUR HOUSE RETIREMENT A retirement PLANNING GUIDE

for INCOME IN USING YOUR HOUSE RETIREMENT A retirement PLANNING GUIDE A retirement PLANNING GUIDE USING YOUR HOUSE for INCOME IN RETIREMENT It s something Americans increasingly need to consider. And increasingly need to do. A retirement PLANNING GUIDE By Steven Sass, Alicia

More information

Secondary Annuity Market IFoA Annuitant Opinion Polling

Secondary Annuity Market IFoA Annuitant Opinion Polling Secondary Annuity Market IFoA Annuitant Opinion Polling 25 April 2016 IFoA research on annuitants attitude to secondary annuity market The IFoA has undertaken independent opinion polling with YouGov to

More information

Home Equity as a Source of Retirement Income February 2013

Home Equity as a Source of Retirement Income February 2013 Home Equity as a Source of Retirement Income February 2013 Written by Edwin L. Weinstein, PhD The Brondesbury Group, Toronto, ON 2013 The Brondesbury Group Home Equity as a Source of Retirement Income

More information

The Reverse Mortgage A FINANCIAL SOLUTION TO ELDERS. By Nandhavanam www.icaremylife.com

The Reverse Mortgage A FINANCIAL SOLUTION TO ELDERS. By Nandhavanam www.icaremylife.com The Reverse Mortgage A FINANCIAL SOLUTION TO ELDERS By Nandhavanam www.icaremylife.com Concept of Reverse Mortgage During the earning period an individual s major earnings goes towards housing loan repayment.

More information

Assets in later life: inheritance, equity release and inter-generational justice

Assets in later life: inheritance, equity release and inter-generational justice Assets in later life: inheritance, equity release and inter-generational justice Karen Rowlingson, Professor of Social Policy Centre on Household Assets and Savings Management Assets in later life A pension

More information

are you in danger of losing your home?

are you in danger of losing your home? are you in danger of losing your home? Mortgage to Rent Scheme help is at hand... We want to make it as easy as possible for you to get information about Mortgage to Rent. You can ask for this document

More information

Reverse Mortgages Reviewed in Recent AARP Report

Reverse Mortgages Reviewed in Recent AARP Report Richard A. Courtney, CELA Certified Elder Law Attorney 4400 Old Canton Road, Suite 220 Jackson, Mississippi 39211 601-987-3000 or 1-866-ELDERLAW For more Articles, go to: www.elderlawms.com Reverse Mortgages

More information

ONE-STOP SHOPPING CONSUMER PREFERENCES

ONE-STOP SHOPPING CONSUMER PREFERENCES ONE-STOP SHOPPING CONSUMER PREFERENCES TRENDED SURVEY RESEARCH AMONG RECENT AND FUTURE HOME BUYERS October 6, CONTENTS Background & Objectives 3 Methodology...4 Executive Summary.6 Conclusions...12 Detailed

More information

Is A Reverse Mortgage Right for You?

Is A Reverse Mortgage Right for You? Is A Reverse Mortgage Right for You? NewRetirement s Guide to Reverse Mortgages www.newretirement.com (877) 394-1305 Table of Contents What is a Reverse Mortgage? Are You Eligible For a Reverse Mortgage?

More information

Enhance Your Financial Security. With a Home Equity Conversion Mortgage

Enhance Your Financial Security. With a Home Equity Conversion Mortgage Enhance Your Financial Security With a Home Equity Conversion Mortgage 1 Call for Additional Information 925-258-0386 1 Unlock Your Home s Equity We understand that you want to transition easily into the

More information

How HECMs Work. Prepared by Genworth. Reverse Mortgages: A Financial Planning Tool

How HECMs Work. Prepared by Genworth. Reverse Mortgages: A Financial Planning Tool How HECMs Work Prepared by Genworth Reverse Mortgages: A Financial Planning Tool What is a HECM? A Home Equity Conversion Mortgage (HECM) is a FHA-insured non-recourse loan that allows homeowners, age

More information

Sun Life Canadian UnretirementTM

Sun Life Canadian UnretirementTM Sun Life Canadian UnretirementTM Index 2013 Canadian Unretirement Index Report Life s brighter under the sun Table of contents Five years of the Canadian Unretirement Index 2 Section 1: A late retirement

More information

BRIEF. Survey Results Summary

BRIEF. Survey Results Summary Research Insights BRIEF The Role of Real Estate In Funding Retirement Retiree and Pre-retiree Opinions The Fidelity Research Institute is designed to advance knowledge of how proven investment theory and

More information

How to Develop a Sporting Habit for Life

How to Develop a Sporting Habit for Life How to Develop a Sporting Habit for Life Final report December 2012 Context Sport England s 2012-17 strategy aims to help people and communities across the country transform our sporting culture, so that

More information

Society of Actuaries Middle Market Life Insurance Segmentation Program (Phase 1: Young Families)

Society of Actuaries Middle Market Life Insurance Segmentation Program (Phase 1: Young Families) Society of Actuaries Middle Market Life Insurance Segmentation Program (Phase 1: Young Families) September 2012 Sponsored By: SOA Marketing and Distribution Section SOA Product Development Section SOA

More information

AN EMPIRICAL EVALUATION OF MONEY TRANSFER SERVICES IN INDIA

AN EMPIRICAL EVALUATION OF MONEY TRANSFER SERVICES IN INDIA 186 AN EMPIRICAL EVALUATION OF MONEY TRANSFER SERVICES IN INDIA DR.M.LATHA NATARAJAN*; DR. M.G.SARAVANARAJ**; R. SERANMADEVI*** ABSTRACT *Head/Professor, Department of Management Studies, Vivekanandha

More information

Int. J. Pharm. Sci. Rev. Res., 33(2), July August 2015; Article No. 06, Pages: 25-29

Int. J. Pharm. Sci. Rev. Res., 33(2), July August 2015; Article No. 06, Pages: 25-29 Research Article *A.R.Shanmuga Priya, **R.Krishnaraj, ***M.Chitra *Assistant Professor, Faculty of Management, SRM University, Kattankulathur, Kancheepuram, Tamil Nadu, India. **Assistant Professor, Faculty

More information

Reverse Mortgage Information Guide

Reverse Mortgage Information Guide Reverse Mortgage Information Guide Table of Contents FHA Reverse Mortgages 3 Common Misconceptions about Reverse Mortgages 4 How the Program Works 4 Benefits of a HECM loan 4 HECM vs. Traditional Mortgage

More information

Frequently Asked Questions

Frequently Asked Questions Frequently Asked Questions 1. What is a reverse mortgage? 2. How does a reverse mortgage differ from a home equity loan? 3. What are the advantages of a reverse mortgage? 4. How much money can I get? 5.

More information

Financial Planning Questionnaire

Financial Planning Questionnaire Form No. (To be filled in by FPSB India) Financial Planning Questionnaire Candidate s Name FPSBI No. / NCFM No. Candidate s Signatures Mode of Registration Education Provider Name of the Education Provider

More information

Can Annuity Purchase Intentions Be Influenced?

Can Annuity Purchase Intentions Be Influenced? Can Annuity Purchase Intentions Be Influenced? Jodi DiCenzo, CFA, CPA Behavioral Research Associates, LLC Suzanne Shu, Ph.D. UCLA Anderson School of Management Liat Hadar, Ph.D. The Arison School of Business,

More information

Using Life Insurance for Pension Maximization

Using Life Insurance for Pension Maximization Using Life Insurance for Pension Maximization Help your clients capitalize on their pension plans Agent Guide For agent use only. Not to be used for consumer solicitation purposes. Help Your Clients Obtain

More information

Reverse Mortgages A Source of Funds for Retirement?

Reverse Mortgages A Source of Funds for Retirement? Reverse Mortgages A Source of Funds for Retirement? Many people make it a goal of their financial lives to invest in a home. It is a great accomplishment when that last mortgage payment is made. Can a

More information

Loan approval procedure and rejection criteria-a conceptual study in PMC bank

Loan approval procedure and rejection criteria-a conceptual study in PMC bank Loan approval procedure and rejection criteria-a conceptual study in PMC bank Rekha MFA II year, Jyoti Nivas College Autonomous PG Centre, Bangalore, India B.Percy Bose Associate Professor and Head Department

More information

Contributors to the Potential Demand for Reverse Mortgage in China

Contributors to the Potential Demand for Reverse Mortgage in China Contributors to the Potential Demand for Reverse Mortgage in China An Empirical Investigation Based on a Questionnaire Survey of Residents in Beijing Chen Bingzheng, Deng Yinglu, Liu Xiaofei, Zhang Lihong

More information

A CONSUMER GUIDE TO LIFE SETTLEMENTS

A CONSUMER GUIDE TO LIFE SETTLEMENTS A CONSUMER GUIDE TO LIFE SETTLEMENTS IAGLSA-ID-BROC 1.0 Page 1 Maximizing the Value of Your Life Policy Building the Foundation of Trust IAG Life Settlement Advisors is committed to its clients, first

More information

PREFERENCES FOR WEALTH MANAGEMENT SERVICES: AN EMPIRICAL STUDY IN UDAIPUR, RAJASTHAN

PREFERENCES FOR WEALTH MANAGEMENT SERVICES: AN EMPIRICAL STUDY IN UDAIPUR, RAJASTHAN PREFERENCES FOR WEALTH MANAGEMENT SERVICES: AN EMPIRICAL STUDY IN UDAIPUR, RAJASTHAN Dr. Dhiraj Jain, Asistant Professor, Pacific Institute of Management, Udaipur, India Ms. Anupama Jhala, Research Scholar,

More information

Reverse Mortgage Is it right for you?

Reverse Mortgage Is it right for you? Reverse Mortgage Is it right for you? Reverse Mortgages are being hyped as a tremendous tool for retirement income. This type of mortgage uses part of the equity in a home as collateral. A Reverse Mortgage,

More information

Government mortgage rescue scheme What will it mean for me and my family?

Government mortgage rescue scheme What will it mean for me and my family? Government mortgage rescue scheme What will it mean for me and my family? What is mortgage rescue? Mortgage rescue is help that the Government is offering if: you are struggling to keep up with your mortgage

More information

The Effects of Demographics on Consumer Perceptions of Identity Theft in Rural and Urban Settings

The Effects of Demographics on Consumer Perceptions of Identity Theft in Rural and Urban Settings The Effects of Demographics on Consumer Perceptions of Identity Theft in Rural and Urban Settings Axton Betz, Ph.D. Student, Iowa State University 1 Identity theft is a serious crime in which an individual

More information

The New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking

The New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking The New Tool For Retirement Income Planning Presented by: Becky Bell, Regional VP, Mortgage Banking Why Consider a Reverse Mortgage? Allows Clients to Take a Dormant Asset (Home Equity) and Put it to Work

More information

Impact of Breast Cancer Genetic Testing on Insurance Issues

Impact of Breast Cancer Genetic Testing on Insurance Issues Impact of Breast Cancer Genetic Testing on Insurance Issues Prepared by the Health Research Unit September 1999 Introduction The discoveries of BRCA1 and BRCA2, two cancer-susceptibility genes, raise serious

More information

PAYMENT PROTECTION INSURANCE RESEARCH

PAYMENT PROTECTION INSURANCE RESEARCH PAYMENT PROTECTION INSURANCE RESEARCH ANALYTICAL REPORT NOVEMBER 2015 ABOUT COMRES ComRes provides specialist research and insight into reputation, public policy and communications. It is a founding member

More information

General Guidelines about SPSS. Steps needed to enter the data in the SPSS

General Guidelines about SPSS. Steps needed to enter the data in the SPSS General Guidelines about SPSS The entered data has to be numbers and not letters. For example, in the Gender section, we can not write Male and Female in the answers, however, we must give them a code.

More information

The question of whether student debt levels are excessive

The question of whether student debt levels are excessive College on Credit: How Borrowers Perceive Their Education Debt By Sandy Baum and Marie O Malley Sandy Baum is professor of economics at Skidmore College in Skidmore, PA. Marie O Malley is vice president

More information

Saving and Investing Among Higher Income African-American and White Americans

Saving and Investing Among Higher Income African-American and White Americans The Ariel Investments 2010 Black Investor Survey: Saving and Investing Among Higher Income African-American and Americans July 21, 2010 1 For further information, contact Merrillyn J. Kosier at Ariel Investments

More information

Mortgages and Loans. Huonville: 8/16 Main St, Huonville 7109 DX 70754, Huonville PO Box 239, Huonville 7109 Ph: 03 6264 2967

Mortgages and Loans. Huonville: 8/16 Main St, Huonville 7109 DX 70754, Huonville PO Box 239, Huonville 7109 Ph: 03 6264 2967 Mortgages and Loans Huonville: 8/16 Main St, Huonville 7109 DX 70754, Huonville PO Box 239, Huonville 7109 Ph: 03 6264 2967 Hobart: Level 1, 18 Elizabeth St, Hobart 7000 DX 231, Hobart GPO Box 16, Hobart

More information

Betting odds and advertising for betting agencies during sports broadcasts Community research JULY 2013

Betting odds and advertising for betting agencies during sports broadcasts Community research JULY 2013 Betting odds and advertising for betting agencies during sports broadcasts Community research JULY 2013 Canberra Purple Building Benjamin Offices Chan Street Belconnen ACT PO Box 78 Belconnen ACT 2616

More information

Understanding retirement income Version 5.0

Understanding retirement income Version 5.0 Understanding retirement income Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to understanding retirement.

More information

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE?

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE? WHAT IS EQUITY RELEASE? Equity Release can free some of the capital tied up in your home, while you continue to live there. This money can be in the form of a tax-free lump sum, a regular income or a combination

More information

Attitude of Working Women towards Investing In Life Insurance with Special Reference to Private Bank Employees Of Coimbatore City

Attitude of Working Women towards Investing In Life Insurance with Special Reference to Private Bank Employees Of Coimbatore City Attitude of Working Women towards Investing In Life Insurance with Special Reference to Private Bank Employees Of Coimbatore City S.VINOTH Assistant Professor RVS Institute of Management Studies and Research

More information

THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION

THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse Mortgage Lenders Association is a nonprofit trade association, based in Washington, DC, whose mission is to support the continued

More information

PERFECT STORM STATISTICS

PERFECT STORM STATISTICS NAIFA CE ABOUT US At Fairway, customer service is a way of life. Fairway is dedicated to finding the best rates for customers and also offers some of the fastest turn times in the industry. The goal is

More information

A PRODUCT FOR SENIOR CITIZENS A TECHNICAL PRESENTATION for discussion purposes only February, 2007 For restricted circulation 1 REVERSE MORTGAGE Reverse Mortgage is a mortgage loan for Senior Citizens

More information

7 Facts You Need to Know About Reverse Mortgages...

7 Facts You Need to Know About Reverse Mortgages... SPECIAL REPORT 7 Facts You Need to Know About Reverse Mortgages... By Quinn Berry 7 Facts You Need to Know About Reverse Mortgages... to help you enjoy a comfortable, worry-free retirement! Chances are

More information

Is it statistically significant? The chi-square test

Is it statistically significant? The chi-square test UAS Conference Series 2013/14 Is it statistically significant? The chi-square test Dr Gosia Turner Student Data Management and Analysis 14 September 2010 Page 1 Why chi-square? Tests whether two categorical

More information

The 2009 Consumer Financial Literacy Survey Final Report. The National Foundation for Credit Counseling

The 2009 Consumer Financial Literacy Survey Final Report. The National Foundation for Credit Counseling The 2009 Consumer Financial Literacy Survey Final Report Prepared For: The National Foundation for Credit Counseling Prepared By: Harris Interactive Inc. Public Relations Research Summary At this time

More information

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:-

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- 1. Executive Summary For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- Ø A place to live, with security of tenure.

More information

Client Fact Finder!!" # $ % " % $& "! $ $& % " %

Client Fact Finder!! # $ %  % $& ! $ $& %  % Client Fact Finder!!"# %"% & "!& %"% Personal Information Today s date: Client initials: Name on cover page: Contact Information Full name: Age: Date of Birth: Retirement age: SS# Driver s license: State

More information

The Cost and Benefit of Reverse Mortgages

The Cost and Benefit of Reverse Mortgages The Cost and Benefit of Reverse Mortgages Han B Kang Illinois State University ABSTRACT There has been a growing popularity of reverse mortgage among senior citizens who need cash. The loan allows homeowners

More information

January 28, 2015 Kauffman Conference Center

January 28, 2015 Kauffman Conference Center January 28, 2015 Kauffman Conference Center Changing Housing Needs for Older Adults Reverse Mortgages: Opportunities and Challenges Pete Mendenhall, CRMP, CAPS North American Savings Bank Understanding

More information

Variables and Data A variable contains data about anything we measure. For example; age or gender of the participants or their score on a test.

Variables and Data A variable contains data about anything we measure. For example; age or gender of the participants or their score on a test. The Analysis of Research Data The design of any project will determine what sort of statistical tests you should perform on your data and how successful the data analysis will be. For example if you decide

More information

Just the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association

Just the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association Published by THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse

More information

A Guide to Equity Release in Retirement

A Guide to Equity Release in Retirement A Guide to Equity Release in Retirement 1. Introduction For the retirement you deserve 2. What is Equity Release? 3. Equity Release Plans The options available to you 4. The Application Process 5. Questions

More information

Government mortgage rescue scheme What will it mean for me and my family?

Government mortgage rescue scheme What will it mean for me and my family? Government mortgage rescue scheme What will it mean for me and my family? What is mortgage rescue? Mortgage rescue is help that the Government is offering if: you are struggling to keep up with your mortgage

More information

YOUR FINANCES...YOUR FUTURE. Avoid deals that say no money down, pay next year. Refrain from emptying the Christmas Savings Fund!

YOUR FINANCES...YOUR FUTURE. Avoid deals that say no money down, pay next year. Refrain from emptying the Christmas Savings Fund! November 2012 Staying Connected For the Alumni of the ECCB s Savings and Investment Course YOUR FINANCIAL End Year Resolutions Pay off the balance on the credit card. Avoid deals that say no money down,

More information

Profile of Households Saving for College

Profile of Households Saving for College Investment Company Institute Research Series Profile of Households Saving for College INVESTMENT COMPANY INSTITUTE Investment Company Institute Research Series Profile of Households Saving for College

More information

About Mortgage Market Corp

About Mortgage Market Corp About Mortgage Market Corp Mortgage Market Corp. works with a variety of lenders and with this being one of the largest financial decision s that you will make, selecting the right mortgage program to

More information

USEFULNESS AND BENEFITS OF E-BANKING / INTERNET BANKING SERVICES

USEFULNESS AND BENEFITS OF E-BANKING / INTERNET BANKING SERVICES CHAPTER 6 USEFULNESS AND BENEFITS OF E-BANKING / INTERNET BANKING SERVICES 6.1 Introduction In the previous two chapters, bank customers adoption of e-banking / internet banking services and functional

More information

A Guide To Reverse Mortgages

A Guide To Reverse Mortgages A Guide To Reverse Mortgages What is a Reverse Mortgage? A Home Equity Conversion Mortgage (HECM) is a program designed for seniors that is ensured by the Federal Housing Authority (FHA). The program was

More information

PRIVATE WEALTH. Client Questionnaire and Risk Profile

PRIVATE WEALTH. Client Questionnaire and Risk Profile PRIVATE WEALTH Questionnaire and Risk Profile Important Notice to The Australian Corporations Act (2001) requires that an Adviser making personal advice recommendations must have reasonable grounds for

More information

Reverse Mortgage Scheme November 2014 REVERSE MORTGAGE LOAN

Reverse Mortgage Scheme November 2014 REVERSE MORTGAGE LOAN REVERSE MORTGAGE LOAN - Source National Housing Bank Website. Reverse mortgage is a financial product that enables senior citizens (60+) who own a house to mortgage their property with a lender and convert

More information

Sun Life Canadian UnretirementTM

Sun Life Canadian UnretirementTM Sun Life Canadian UnretirementTM Index 2014 Canadian Unretirement Index Report Life s brighter under the sun Table of contents About the Sun Life Canadian Unretirement Index... 2 Will you be working at

More information

The Reverse Mortgage Opportunity. Today s Solution to your Peace of Mind

The Reverse Mortgage Opportunity. Today s Solution to your Peace of Mind The Reverse Mortgage Opportunity Today s Solution to your Peace of Mind The 2009 Retirement Environment 2008 Market downturn Net worth losses portfolio restrictions Age restrictions on employment Travel

More information

TRADING PRACTICES IN EQUITY MARKET AMONG RETAIL INVESTORS WITH SPECIFIC REFERENCE TO CHENNAI CITY

TRADING PRACTICES IN EQUITY MARKET AMONG RETAIL INVESTORS WITH SPECIFIC REFERENCE TO CHENNAI CITY EPRA International Journal of Economic and Business Review Inno Space (SJIF) Impact Factor : 4.618(Morocco) e-issn : 2347-9671, p- ISSN : 2349-0187 Vol - 3, Issue- 7, July 2015 ISI Impact Factor : 1.259

More information

Module 9: Nonparametric Tests. The Applied Research Center

Module 9: Nonparametric Tests. The Applied Research Center Module 9: Nonparametric Tests The Applied Research Center Module 9 Overview } Nonparametric Tests } Parametric vs. Nonparametric Tests } Restrictions of Nonparametric Tests } One-Sample Chi-Square Test

More information

USE YOUR HOME TO STAY AT HOME

USE YOUR HOME TO STAY AT HOME USE YOUR HOME TO STAY AT HOME Role of Reverse Mortgages to Pay for Long-Term Care at Home Press Briefing National Council on the Aging January 26, 2005 Contact: Scott Parkin, NCOA VP Communications 202-479-6975

More information

CHAPTER VI ON PRIORITY SECTOR LENDING

CHAPTER VI ON PRIORITY SECTOR LENDING CHAPTER VI IMPACT OF PRIORITY SECTOR LENDING 6.1 PRINCIPAL FACTORS THAT HAVE DIRECT IMPACT ON PRIORITY SECTOR LENDING 6.2 ASSOCIATION BETWEEN THE PROFILE VARIABLES AND IMPACT OF PRIORITY SECTOR CREDIT

More information

Welcome. YourHomeYourEquity.com. Integrity Mortgage Group I 2220 Highway 17 I Little River, SC I Phone: (843) 491-1436

Welcome. YourHomeYourEquity.com. Integrity Mortgage Group I 2220 Highway 17 I Little River, SC I Phone: (843) 491-1436 Welcome Reverse Mortgage Information presented by, Integrity Mortgage Group David Stacy Director of Reverse Mortgage Lending (843) 491-1436 Office (843) 267-6789 Cell A Brief History of Reverse Mortgages

More information

The Institute of Chartered Accountants of India

The Institute of Chartered Accountants of India CHAPTER 4 SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY APPLICATIONS SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY- APPLICATIONS LEARNING OBJECTIVES After studying this chapter students will be able

More information

Survey of Financial Knowledge of Pacific People in New Zealand

Survey of Financial Knowledge of Pacific People in New Zealand Survey of Financial Knowledge of Pacific People in New Zealand Part 1: Your Use of Money Transfer and Remittance Services 1. Before receiving this survey, had you ever used a newspaper, website or other

More information

Equity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co.

Equity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co. Equity Release Guide 0800 612 5749 www.therightequityrelease.co.uk Helping you make the right decision nationwide service all lenders available personal visits 1 Welcome to The Right Equity Release Who

More information

Credit Card Usage among White, African American and Hispanic Households

Credit Card Usage among White, African American and Hispanic Households Consumer Interests Annual Volume 52, 2006 Credit Card Usage among White, African American and Hispanic Households The use of credit cards among White, African-American and Hispanic households was investigated

More information

Your retirement could have even more going for it

Your retirement could have even more going for it Your retirement could have even more going for it A straightforward guide to equity release For no obligation advice: call 0800 015 0993 www.justretirementsolutions.com Contents Imagine what you could

More information

You must always read the fine print of the contract and understand the limits or exclusion clauses.

You must always read the fine print of the contract and understand the limits or exclusion clauses. Introduction This is an introductory guide to help you understand how life insurance works.it gives you basic information so that you can make an informed decision when purchasing life insurance policy.

More information