JTYK Contributes Greatly to Stabilizing Retirement Life

According to a user survey (total of 681 respondents) conducted by KHFC to mark the first anniversary of the launch of JTYK (July 12), JTYK users spend KRW950,000 per month as  living expenses while receiving KRW945,000 per month from their reverse mortgages. Although there are additional expenditures, such as medical expenses, financing expenses and living expense for their children, they feel JTYK is a great help for their life in retirement.

As for the reasons for joining the JTYK program (multiple responses), the largest number of respondents answered "do not want help from children (61.7%)", which was followed by "no other plans for retirement life (50.5%)," "want a comfortable living for the rest of my life (14.8%)," and "needed more money for living expenses (8.4%)". As for key factors considered in applying for JTYK, they answered "monthly amount (57.1%)," "whether it is paid for life (16.6%)" and "whether both husband and wife can receive it (5.1%)".

The survey showed that when respondents joined the JTYK program, 90.4% discussed it with people around them. In particular, 64.8% answered they discussed it with their children in addition to their spouse, which indicates that they were quite conscious of their children, who are their presumptive heirs.

Regarding intention to leave a house to their children, 87.2% of senior citizens and 62.5% of JTYK users wanted to hand down a house. On the other hand, the number of responses not planning to leave a house for their children was three times higher among JTYK users (37.6%) than among senior citizens as a whole (12.7%). The survey showed that although it is relatively weaker, there is still a deeply felt concept of leaving a house to one's heir even after joining the JTYK scheme.

In a question asking about satisfaction with JTYK, 78.5% of users expressed above average satisfaction and 45% answered they would recommend JTYK to others.

The average age of users is 74 years old (in the case of a couple, the lower age is counted), the average value of the secured house is KRW241 million and the average monthly payment is KRW970,000.

As for house types, apartments accounted for the largest share (84.2%) and housing located within the capital area including Seoul, Incheon and Suwon made up 76.1% of the housing within the scheme.