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Pensions and housing wealth: Quantitative data on market conditions for equity release schemes in the EU


  • Hennecke, Peter
  • Murro, Pierluigi
  • Neuberger, Doris
  • Palmisano, Flaviana


Equity release schemes (ERS) may provide pension insurance by liquidating owner-occupied residential property. This paper examines the available data on market conditions for such products in all EU member states to cluster countries. Need for ERS is measured by demographic pressure, risk of poverty for the elderly and pension adequacy. Feasibility of ERS is measured by property and mortgage market indicators. Comparing overall need and feasibility index values we find that market conditions are very heterogonous in EU member states. For instance, while the Netherlands and the UK exhibit favourable ERS conditions, the opposite applies for Germany and Ireland. Hungary and Italy lie in between.

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  • Hennecke, Peter & Murro, Pierluigi & Neuberger, Doris & Palmisano, Flaviana, 2017. "Pensions and housing wealth: Quantitative data on market conditions for equity release schemes in the EU," Thuenen-Series of Applied Economic Theory 146, University of Rostock, Institute of Economics.
  • Handle: RePEc:zbw:roswps:146

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    References listed on IDEAS

    1. Fornero, Elsa & Rossi, Mariacristina & Urzã Brancati, Maria Cesira, 2016. "Explaining why, right or wrong, (Italian) households do not like reverse mortgages," Journal of Pension Economics and Finance, Cambridge University Press, vol. 15(2), pages 180-202, April.
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    More about this item


    ageing; equity release; pensions; homeownership; housing; reverse mortgage;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • G1 - Financial Economics - - General Financial Markets
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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