||Taiwan's population structure is facing a huge change when the baby boomers gradually entering retirement age. This change leads to many social problems such as population structure and traditional thinking are changed. It has affected the lives of the elderly directly.|
Taiwan is entering a lower birth rate and aging society. The traditional concept of "Rearing children for old age" has been broken. The care of the elderly is not only a family problem, but a social problem. The “reverse mortgage (RM)" provides a cash flow mechanism for the elderly who are house-owners but have no cash.The RM helps the elderly enjoy their later years in their own house.
In this study, we introduce the concept of the RM in the beginning. Secondly, we further investigated the experience of other countries which have started this program.Also, the problems we are going to face in Taiwan if we want to do this business. Besides, we do in-depth interviews base on these studies and Taiwan market. After analyzing and summarizing, we provide the feasible suggestions for helping proposal in order to help banks handle the business of the RM.
By doing this study, we find that there are five issues and 20 sub-problems we have to face if we want to do the RM business in Taiwan. These issues include risk, law, institution, culture and financial supervision.Based on these points of view. We summarized three conclusions and provide six recommendations. We hope these could help banks clarify these points quickly in order to enhance their willingness to open the RM business. Also, the government might read this study for reference. Finally, to achieve the purpose of increasing income for the elderly, reducing the financial burden to their children and maintaining living quality and dignity of the elderly.