A growing number of elderly choose not to bequeath their housing to their children

- Respondents see pension benefits offered each month throughout their lives as the biggest advantage of JTYK

- The biggest motivation for JTYK users is their wish “not to turn to their children for living expenses”

A recent survey shows that the number of senior citizens wishing to pass down their housing to their children is declining each year. Those surveyed cite “receiving pension benefits each month throughout their lives” as the biggest advantage of the JooTaekYeonKeum (JTYK) reverse mortgage loan scheme.

On July 15, the Korea Housing Finance Corporation (HF, CEO Seo Jong-dae) announced the results of the “2013 JooTaekYeonKeum Demand Survey.” Conducted on 2,000 general house-owning elderly households and 600 JTYK user households from April 23 through May 29, the survey aims to understand the financial status of elderly Koreans and their awareness and use of JTYK.

□ Elderly Koreans increasingly unwilling to hand down their housing

A whopping 25.7% of the general elderly households surveyed said they would not bequeath their housing to their children. The figure has constantly grown from 12.7% in 2008 to 20.9% in 2010, 21.3% in 2012 and 25.7% in 2013.

In particular, 33.5% of those aged 64 or under replied they would “not bequeath their housing to their children,” implying the preference for ownership succession grows weaker among the younger elderly population.

The share of housing among elderly-held assets stood at 81.6% for general elderly households and 92.8% for JTYK users, showing housing accounts for a considerably larger share than other assets as a substantial financial means for retired life.

“A declining number of senior citizens wish to pass down their housing to their children,” explains one HF official. “Under such circumstances, elderly Koreans hoping to have a more stable and affluent life after retirement will show greater interest in JTYK.”

□ JTYK users enjoy a greater monthly income than the general elderly population as they grow older

The survey also indicates that JTYK benefits account for 69.4% of the entire monthly income of JTYK users. Especially among those aged 70 or above, the income of JTYK users was greater than that of the elderly population in general; the share of JTYK benefits in the monthly income went up among older groups, implying that JTYK does provide substantial income support for the elderly.

* 60-64 (50%) → 65-69 (59%) → 70 or above (over 70%)

□ Respondents see “pension benefits offered each month throughout their lives” as the biggest advantage of JTYK

In the survey, 92.6% of general elderly households and 96% of JTYK users cited “pension benefits offered each month throughout their lives” as the biggest advantage of JTYK. These figures are higher than the 89.7% and 93.5%, respectively, from the 2012 survey.

The biggest motivation for JTYK users was their wish “not to turn to their children for living expenses” (87.0%), followed by “having no other option to fund their later lives” (85.7%).