A study on the benefits of housing pension according to housing prices

As Korea experiences rapid population aging, concerns regarding retirement income for retirees and the elderly are increasing. In this context, the reverse mortgage system, or “housing pension,” is a crucial program for both current and future retirees who have made significant investments in homeownership during their working years. Recognizing its importance, the government has expanded the eligibility criteria for the housing pension and provided various incentives, including tax benefits. However, the recent increase in the maximum eligible home price for participation, now set at 1.2 billion KRW based on the officially assessed value, has raised concerns about equity among participants. This study examines the extent of the disparity in benefits according to housing prices and proposes measures to address these inequities. The findings indicate that the level of benefits increases with higher home values, leading to a widening gap. Therefore, adjustments to the housing pension conditions are necessary to ensure fairness in benefit levels across different home prices. The study suggests reducing interest rates for lower-priced homes or increasing interest rates for higher-priced homes to balance the benefit distribution. To improve equity in the housing pension system, the government should provide additional support to offer lower interest rates for homes with lower values.