“Seniors' JTYK subscription rises in their 70s and falls in their 60s"

- HF's analysis of JTYK subscription for 2011 –

A growing number of seniors in their 70s are joining JooTaekYeonKeum (the government-guaranteed reverse mortgage program).

The Korea Housing Finance Corporation (HF, CEO Joo-jae Lim) announced on June 13 that according to its analysis of JTYK subscription by age, seniors in their 70s take up 54.7 percent, up 5.9 percentage points from last year (48.8 percent) and those in their 60s make up 30 percent, down 3.9 percentage points from last year (33.9 percent).

The reason for an increase in JTYK subscription among seniors in their 70s is that they are actively joining the program to cover living expenses in old age as they are running out of money after 10 to 15 years in retirement.

A HF official said, "People in their 60s still have enough retirement income after just a few years in retirement and they can earn money through reemployment, but those in their 70s have a hard time in getting a job due to old age and health problems. That is why an increasing number of seniors in their 70s are trying to cover living expenses through the JTYK program."

By region, the share of non-Metropolitan regions has been on the rise from 20.0 percent in 2008 ▲ to 21.4 percent in 2009 ▲ to 23.3 percent in 2010 ▲ to 24.2 percent in 2011 (May).

The official said, "The increase in the share of non-Metropolitan regions shows that a positive perception of JTYK formed among the elderly in the Seoul Metropolitan area at the time of its release has recently spread to provincial areas."

In terms of pension payment, the share of the fixed amount option where the monthly payment amount is fixed throughout their lives was up 6.0 percentage points from last year while that of the decrease option where the monthly payment amount starts high but decreases by 3 percent each year was down 6.1 percentage points.

HF explained that the elderly concerned about potentially higher living costs from price increases opted for the fixed amount option, instead of the decrease option, to plan a budget to live within their means."