The implementation circumstances of the reverse mortgage credit, an innovatory product for the old age security in Poland

53 THE IMPLEMENTATION CIRCUMSTANCES OF THE REVERSE MORTGAGE CREDIT, AN INNOVATORY PRODUCT FOR THE OLD AGE SECURITY IN POLAND Ane a Nie upska W ocław Uni e si y o Economics, Facul y o Economics, Managemen and Tou ism, ul. Nowowiejska 3, 58-500 Jelenia Gó a, Poland e-mail: ane a.nie upska@in e ia.pl Abs ac The a icle a emp s o app oxima e he mechanism o ac ion o inno a i e p oduc s in ended o p o ec people in hei old age. The e was also iden i ied a pension o li e and a e e se mo gage c edi , which based on he capi al loca ed in an es a e, gi e p ope y owne s he oppo uni y o con e his " ozen" capi al in o eal unds. Cu en ly, he Polish socie y needs inno a i e solu ions o he imp o emen o domes ic budge s. In iew o he leng hening o he a e age li e expec ancy o nega i e g ow h, he amily model 2 plus 1, bu also o he p ospec s o success ul de elopmen o he Polish economy and he eal es a e ma ke , secu i y p oduc s o people in he ime o hei old age dese e widesp ead p omo ion. In oduc ion A p og essi e dec ease in he bi h a e wi h a collapse o he pa icipa o y pension scheme lead o sea ching o al e na i e inancial implemen a ions which could p o ide inancial secu i y o senio s. Many a emp s a e aken o ind he ools o he a ge implemen a ion. Among hem a he op he e is a pe pe ui y (a pension o li e) and he e e se mo gage, which can be ea ed as inno a o y p oduc s made by inancial enginee ing. In my a icle, I aim o econs i u e and concep ualise he e e se mo gage and poin ou i s ad an age o e he pe pe ui y. 1 Theme o Inno a ion in he Financial Enginee ing The e m “inno a ion” comes om La in “inno a is”, which means enewal and c ea ing some hing new [12]. In economic s udies, his e m was in ol ed, popula ized and desc ibed by J.A. Schumpe e . An inno a ion was he in oduc ion o a new p oduc o a new so o p oduc s, a new me hod o p oduc ion, opening he new ma ke , acqui emen o a new esou ce and, implemen a ion o he new o ganiza ion o some indus y, o example, c ea ion o monopolies o b eaking hem [9, p.104]. Acco ding o Z. Pie asiński, inno a ions a e changes made in en ionally by human beings (…) and based on eplacemen o cu en hings by new ones, which a e e alua ed posi i ely acco ding o a ious c i e ia o p og ess [6, p. 10]. J. Pajes ka s a es ha i does no ma e i a p oduc is known in di e en places (…); an inno a ion is no only he hing, which is absolu ely wo ldwide new, bu a hing being new o ha socie y [5, p. 179-180]. E e y single inno a ion c ea es some new possibili ies, bu also p o ides es ic ions and isks [12]. I we y o make a subjec di ision o enginee ing – which in oduces e e y inno a ion – we could dis inguish he i s one, classically de ined as a physical enginee ing based on he laws o na u e and science and physics, which is needed o cons uc ion ma e s; and he second ype is he one connec ed wi h he social enginee ing, which is no connec ed o ma e ial as much as he i s one, bu i is associa ed wi h ac ions and based on laws o social de elopmen and cul u e. 54 Co espondingly, he p oduc and e ec o he i s one a e echnical inno a ions, such as new esou ces and echnologies- and o he second ype he e a e social inno a ions. Many ins i u ions and social ins umen s, which seem o be ob ious and inex icable pa s o economic and social li e, ha e been p o ided some day and ha e been seen as an inno a ion and an in en ion and e en an a e ac demanding he social accep ance [12]. As an example, I can in oduce he in en ion o pape money, c edi s, he insu ance sys em and so on. Ano he o m o social enginee ing is inancial enginee ing. By con as , inancial enginee ing is comme cial and i is a b anch o mode n inance, supplying he inancial ma ke s wi h necessa y ools needed o o ecas ing and o modelling e en s. Whe e o e he whole ange o inno a o y inancial p oduc s is c ea ed (in e alia he e e se mo gage). 2 Re e se Mo gage as an Inno a o y Bailou o he Old Age and an Al e na i e o a Pension The e e se mo gage is one o he inancial p oduc s which a ouses in e es and has become he subjec o many discussions and analyses [1, p. 444]. Al hough i does no exis on he Polish inancial ma ke , due o he pending legisla i e wo k, some economic and demog aphic p esump ions a e no iceable, and consequen ly, his leads o he quick implemen a ion o he issue o e e se mo gage. The la ges impac on he p og ess in he e e se mo gage is caused by an inc easing g oup o e i ed people whose pension packages come o a de ini ely lowe le el han hei p e ious sala y. The inc easing numbe o pensione s is a esul o he leng hening o li e’s du a ion and also o a pe iod o dec ease in he bi h a e, which consequen ly b ings a declining amoun o he wo king-age popula ion. Tha leads o a alling alue o social-secu i y con ibu ions, a ec s nega i ely he capaci y o he whole insu ance and pension sys ems and i will be a ac o esponsible o a huge d op in he pension alue. The aging o popula ion leads o inancial changes in he social-secu i y sys em. The e ec is seen as a depa u e om he pay-as-you-go sys em o he new sys em: con aining some capi al ese es. Howe e , i is wo h o men ion ha he alue o u he pension igh s is also based on en i lemen o a e i emen pension and on he a e age li e’s du a ion besides he capi al. Those e ms lead o he dec ease in he eplacemen a e (p opo ion o a pension o he las - paid sala y), which e ec s he inc easing po e y among he old age people. E en de eloped coun ies s uggle wi h ha kind o p oblem o ge ing new inancial esou ces o he old age pensione s. One o hem can be a eal es a e. In he old days, an es a e in nume ous amilies used o be a cashless way o inancing in he old age by adul child en (mos o en i was a dow y o he oldes daugh e who nu u ed he pa en s). Acco ding o many changes in he amily s uc u e (appea ing o "nuclea amilies"), he eal es a e was a kind o a ee o he s ange as a way o paymen o ca e in he old age pe iod. An apa men could be gi en away as an inhe i ance o wi h a li e con ac . Howe e , bo h we e connec ed wi h a isk o each side o he con ac . The es amen could be changed wi hou any no i ica ion. On he o he hand, i he e was a con ac , he p ope y was gi en away a he momen o signing. The e o e he e was a high isk o mo al gaming o e en, in ex eme cases, a c ime could be commi ed. Howe e , in he case o bo h he e was an insol ency isk o indi idual people. Hence ins i u ional esolu ions we e wan ed. The e e se mo gage seems o be exac ly one o such esolu ions [7]. Those a e inancial p oduc s used in Eu ope and all o e he wo ld, which include bo h a loan o a mo gage and secu i y in he old age (a kind o a pension sys em). In Poland he e e se mo gage is seen as wo di e en sys ems o capi al con e sion: he so- called selling (called also pe pe ui y), which is o e ed by mo gage unds, and a c edi (a e e se mo gage c edi ) [1, p. 445]. 55 Due o he ac ha many comme cials and ad e isemen s appea e y o en and old people a e emp ed by hei s o ies abou an ex a income, i is impo an o emembe he necessi y no o iden i y e ms o he pension o li e and he e e se mo gage (c edi ) as one hing. Fi s o all, a pe pe ui y based on a li e con ac is gene ally named a e e se mo gage and i is an exis ing p oduc . The e e se mo gage c edi is a planned p oduc . Mo eo e , he e a e some basic di e ences be ween hei ules. To sum up, he e e se mo gage is ha kind o c edi which we do no need o pay o du ing ou e li e. This p oduc belongs o he amily o p oduc s called equi y elease, which means hey enable o change he dead capi al o he es a e in o he inancial capi al. I can be used only by people wi h p op ie a y igh s o he es a e, o h ough co-pa ne ship, pe pe ual usu uc o coope a i e igh s. The abo e men ioned ways o igh s le he owne s ca e abou hei p ope ies by hemsel es and hey lead o inno a o y ac i i ies. Acco ding o i s name, he case o e e se mo gages does no o ce he clien o pay any ins almen s o he bank; he bank pays he clien egula ly. The clien can also each he conclusion ha i was no a good decision and in ha case he is allowed o back ack om he con ac in 30 days. The bank will jus demand he owne o keep he es a e in ac , in a good echnical condi ion, - pay all axes and insu e he building. The cus ome is an owne ill his o he dea h (o a co-owne in he case o ma iage) i s/he complies wi h he e ms and condi ions o he con ac . The bank will ake he igh o he p ope y i he hei s do no pay o he c edi wi h i s in e es s and cha ges. The alue o he es a e will be de e mined by an assessmen made by an adjus e and a e an ag eemen eached wi h he hei s [15]. The e e se mo gage c edi s a e cha ac e ized by he ac ha he decision and i s alue a e depending on he LTV ac o (in gene al, he olde he pe son is, he easie i is o ge he c edi and he LTV amoun is highe ). The decision does no depend on c edi wo hiness, bu on he age, p edic ed leng h o li e, alue o he es a e and he in e es a e [1, p. 447]. The pe pe ui y is di e en om he e e se mo gage c edi in he momen o he ans e o he owne ship. Fi s o all, in he mo gage egis e he owne is he con ac ed pe son, which means ha he hei s ha e no possibili y o ge he es a e back. They can only buy i paying he p ice o imbe . The pe pe ui y, which is a selling kind o a e e se mo gage, is con olled by he laws o he Ci il Code [13] and i is based on he li e con ac . Fo he secu i y o he conce ned, he Minis y o Finance allows he c edi p omised only o inancial ins i u ions moni o ed by he KNF. The assump ions o legisla ion we e changed a e 2010. In 2012 he depa men o he Depu y P ime Minis e Pawlak demanded moni o ing o ules o bo h he e e se mo gage c edi and pe pe ui y by using he same legisla ion. I was no accep ed by he Minis y o Finance. In Table 1 bo h p oposals a e shown, which can be compa ed wi h he esolu ions o he mo gage unds ( he las column). The da a include he p ima y di e ences be ween he e e se mo gage c edi and a pension o li e. A pensione who decides o sign he con ac o he pension wi h any mo gage und will immedia ely gi e his o he p ope y igh s o he und and will ge he pension o li e. They will s ill need o make all u ili y paymen s. In such a case he hei s will no ha e any oppo uni y o ge he es a e. In he case o he e e se mo gage c edi he pensione s ays he owne o he es a e o all li e, he o she will make he u ili y paymen s, bu he hei will be able o egain he p ope y. 56 Tab. 1: The Assump ions o he Ac o Re e se Mo gage C edi Assump ions The Minis y o Finance p ojec ( e e se mo gage c edi ) The Minis y o Economy p ojec (amended pension o li e) Cu en pensions o li e T ans e o p ope y igh s A yea a e a clien ’s dea h a he momen o signing he con ac a he momen o signing he con ac LTV a e (p opo ion o he sum o es ima ed paymen s and he alue o he eal es a e) no limi s, LTV connec ed o he cus ome ’s age ( he olde ones ge he highe paymen s) no men ioned no s ic e ms he elde ly can ind highe paymen s, ( i ually LTV is 30 - 40%) Te m o paymen s acco ding o he con ac ( o example 15 yea s) li e li e Requi emen o an ins i u ion’s aking o he es a e bank s a us o b anch o c edi ins i u ion s a us CO o PLC., equi y highe han 50.000 €, KNF pe mission no equi emen Moni o ing o KNF yes no no Possibili y o paying o he c edi by he hei s Up o 12 mon hs a e he senio ’s dea h no no Elde ly’s du ies he same o all: p ope y insu ance, p ope y held in good condi ion, all u ili y paymen s no men ioned a ious, basic condi ions a e: p ope y held in good condi ion, all u ili y paymen s Sou ce: A. P ajsna , Odw ócona hipo eka po zebna od za az, h p://www.po el.pl The e e se mo gage c edi is a sa e p oduc han he pension o li e. The main ad an age is ha he p ope y igh emains wi h he elde ly pe son ill his o he dea h, and he e a e some possible ac i i ies which can be done by he hei s. Fu he mo e, he hei s can ge he di e ence be ween he alue o he p ope y and he amoun o he c edi (only i he di e ence is posi i e). Howe e , when he pensione does no ha e any ela i es, he su plus will be gi en o he T easu y. Mo eo e , he e e se mo gage c edi will be used by a p o essional subjec , moni o ed and suppo ed in a inancial way, which should be ex emely impo an o he would-be pensione , because i can assu e pe manence o he bene i . Du ing he legisla i e d a ing, he assump ions shown in Table 1 we e changed. In mid- Oc obe 2013 some new assump ions we e c ea ed. The no el y in oduced was he ac ha he bank should be obliged o gi e he cus ome an in o-shee abou he e e se mo gage c edi no la e han se en days be o e signing he con ac . I was c ea ed as an addi ional secu i y which should allow he senio s o hink he issue o e . Each bank mus use he same o m o he in o-shee including desc ip ions o he c edi , ees and some in o ma ion abou he igh s and du ies o he cus ome . I allows he clien o compa e di e en o e s. Also he age o cus ome s was changed. P e iously i was 60 yea s, bu in e ec o consul a ion he limi was wi hd awn. A p ospec i e legisla ion will ha e in luence on: 57  na u al pe sons,  hei s,  banks, o eign banks and inancial ins i u ions pe o ming c oss-bo de ac i i ies,  adjus e s,  Financial Se ices Au ho i y,  Cou o Gene al Ju isdic ion,  solici o s. The legisla ion in ol es he abo e men ioned subjec s and i will de ine hei unc ions. The na u al pe sons and banks will be bo h sides o he con ac . The hei s can ake pa in eckoning he amoun o he c edi and hey a e allowed o pay i o o pa icipa e in i . An in e es o he adjus e s will be manda o y in he p ope y alua ion. The Financial Supe ision Commission pe o ming supe iso y unc ions o e hei espec i e c edi acili ies will be obliged o iden i y he p uden ial equi emen s o hem. The inc ease in he numbe o cases deal wi h by he cou s and speci ically by he depa men s o ci il and land egis e s will be clea ly isible. No a ies will be obliged o no i y he c edi ins i u ion in he e en o ans e o he p ope y by he bo owe o a hi d pa y, which will be p o ided unde he con ac , secu ing a mo gage. The aim o he d a law is o p o ide he bene icia ies, namely he elde ly, wi h a legal ac which comp ehensi ely egula es he se ice and c edi ing ins i u ions o p o ide e ec i e ed ess mechanisms [16]. 3 Demog aphic and Economic Condi ions o he In oduc ion o Re e se Mo gage C edi s On he Polish ma ke he e is a need o in oducing a e e se mo gage c edi as soon as possible. I is being p omp ed by he economic and demog aphic ac o s - which g adually bu mo e quickly al e he s uc u e o he Polish popula ion. Acco ding o E. Rosse , he ans o ma ion in he age s uc u e o he popula ion means ha “ he whole o ganiza ion o socie y and all wo king social sys ems a e smalle o g ea e ans o ma ions” [8, p. 25]. The de elopmen o new medical echnologies and diagnos ic me hods ha e imp o ed he heal h condi ions o he Poles. As a esul , a dec ease o he dea h a e inc eases he a e age li e expec ancy. Ex ending he li espan and he low e ili y a es con ibu e o he change o he popula ion s uc u e. The numbe o people in he e i emen age, becomes an addi ional bu den o he s a e budge . This causes an inc ease in he go e nmen expendi u es on heal h ca e, bu p ima ily i leads o an inc ease in spending o he olde people in ela ion o aging. Aging is a na u al ac , he nex s age o human li e. While aging is a p ocess, he e is no uni e sally accep ed and applicable bounda y o aging and he old age. The beginning o he old age shall be con ac ually 60-65 yea s o age. The “old age” means ha a pe son has exceeded 75 yea s o age; people who ha e c ossed 90 yea s o age a e conside ed o be long- li ed. Howe e , biologically we s a o age a e 40 yea s o age [10, p. 147]. In li e a u e au ho s ci e a ious o ms o names o de e mine aging, which a e shown in Table 2. Tab. 2: The Fo ms o Aging THE FORMS OF AGING Fo una e aging Casual aging Pa hological aging p ocess wi hou any diseases and no causes o li e limi s associa ed wi h mino limi a ions in e e yday li e accele a ed by disease Sou ce: Own elabo a ion 58 The hi d kind, he pa hological aging is he mos expensi e one. People su e ing om his ype o aging a e hose who equi e a cons an ca e om hei ela i es o ely on help om cen es o ca e and ea men . In addi ion o physical heal h p oblems, hey equi e con inuously adminis e ed medica ion, ehabili a ion equipmen , d essing ma e ials, e c. Also he lis o eimbu sed d ugs is changing yea ly o mos people. Howe e , hese changes a e un a ou able; hey ul ima ely gene a e mo e and highe cos s o d ugs and medical supplies. The e o e o he oldes people ha ing a modes household budge is no su icien o be able o inance hei needs o aging. As ge ia icians es ima e, e e y hi d Pole a e 75 yea s o age is no able o pe o m all ypes o pe sonal and household jobs o li e on hei own [10, p. 147]. Popula ion aging is one o he mos impo an economic, social and demog aphic changes. The popula ion o he elde ly people is inc easing, because o he inc ease in li e expec ancy and declining o bi h a es. The decline in e ili y is a phenomenon cha ac e is ic o mode n socie ies. Among o he s, his in ol es he p ocess o mode niza ion, changes in alues, changes in he ole o women in he socie y, access o con acep ion and access o he educa ion sys em and he labou ma ke . In Poland in 2007, he e ili y a e was 1.21, which was among he lowes ones in he EU-27 (cu en ly i ho e s a ound 1.3-1.4). The Eu os a epo published in Augus 2008 wa ns ha in 2060 Poland will ha e he highes p opo ion o people o e 65 yea s in he Eu opean Union: 36.2% (in 2006 i was 13.5%). In combina ion wi h he s ong emig a ion o young people and he lack o immig a ion, his si ua ion will lead o s ong popula ion declines and un a ou able s uc u al changes. An ex emely impo an ac o o he ac ual loss in popula ion o Poland became he emig a ion o Wes e n Eu ope a e 2004. Acco ding o he census o 2011 (CSO 2012) he numbe o Polish emig an s ab oad o e he yea was 1.5 million, which means ha he popula ion cu en ly li ed in Poland is al eady less han 37 million. The same da a indica e ha 200 housand. Polish esiden s o o eign coun ies a e mos ly child en unde 14 yea s o age, i poin s o he ac se lemen mig a ions o en i e amilies [4, p. 1]. In Poland, he ci izens’ li ing condi ions a e a ied. The old people do no belong o he bene icia ies o he Polish poli ical ans o ma ion as in hei case he e is an accumula ion o a ious dimensions o nega i e ac o s de e mining he o e all quali y o he li e index. The lowes quali y o li e is cha ac e ized mainly o social ca ego ies such as pensione s, widowed, single, di o ced, olde and poo ly educa ed [2, p. 345-355]. Among households o he elde ly he e is a p edominance o he single and double, consis ing solely o a single gene a ion. The CBOS esea ch in 2007 shows ha 38% o he people o e 60 yea s li ed alone and 36% wi h ano he olde pe son. 15% o he esponden s we e li ing in he same household wi h hei child en, and also wi h hei g andchild en o o he people - 11%. In 2009, 66% o esponden s o he same esea ch cen e decla ed a p e e ence o an apa men in hei own house, and occasionally hey enlis ed hei p e e ence o he help o amily o iends [14, p.3]. The income si ua ion o he olde people indica es he le el and s uc u e o expendi u e. I is c ucial o mee he basic needs, such as ood and housing ees. Acco ding o he sel - assessmen subjec s in he mos disad an aged pensione s ind hemsel es, 85% o households el i di icul o make ends mee . In addi ion, he a m pensione s had he wo s assessmen o hei own si ua ion; 42.4% o pensione s and pe cei ed hei si ua ion as bad o e y bad. Olde people ha e li le oppo uni y o imp o e hei li ing condi ions. Acco ding o he Cen al S a is ical O ice in he second qua e o 2011, he ac i i y a e o people aged 60-65 yea s and o e was 6.6%. I is ue o say ha , al hough he inancial si ua ion o he 59 elde ly ends o ake up gain ul employmen , he egula ion and social p essu e a he hei labou ma ke o elimina e he po e y [3, p. 335]. Because o ha Poland needs o adap o he equi emen s o he Eu opean Union. Ano he eason is he poo s a e o he public inances ollowed by in e alia, he inc ease in he cos o main aining he p ope y. I is a ec ed by an inc ease in all ees and axes le ied by he s a e o he compulso y le ies, such as inc easing axes on pe pe ual usu uc o land, p ope y axes, he inc ease o he p ice o insu ance policies and p ices supplied by he media. This si ua ion ad e sely a ec s he li e si ua ion o he elde ly, and causes he sh inking o inancial esou ces a ailable a hei disposal. The decline in e ili y a es, emig a ion and he new model o he nuclea amily will ha e an impac on he inc ease in he numbe o people who emain wi hou hei s. The nex esul is jus ha i will be no pe son o gi e he p ope y. Such a si ua ion will ouch he people, who ha e a igh o he p ope y on he one hand i will be easie o decide wha o do wi h hei conduc , on he o he hand may be e en o ced o make a decision abou he use o capi al accumula ed in eal es a e due o he inabili y o main ain an adequa e s anda d o li e. These ac o s a ec he de elopmen o he e e se mo gage c edi . Dissemina ion o a e e se mo gage is also associa ed wi h he numbe o comple ions o mode n and a ac i ely loca ed apa men s o houses. In he u u e, hese p ope ies will be mo e desi able om he poin o iew o he banks as a colla e al op ion o e e se mo gages han, o example, a p ope y in an olde building o la s in blocks o la s. In p ac ice, he easie i will lead hem in he di ec ion o o a ion o he p ope y [1, p. 447]. The housing s uc u e acco ding o he owne ship ela ions in Poland no ed be ween 2007 and 2009 also leads o op imis ic e alua ions abou he u u e o his inancial p oduc . The da a p esen ed in Table 3 show ha 64% o he homes in 2007 belonged o indi iduals. Howe e , in 2009 his sha e inc eased o 70%. O e he wo yea s, 989 housand homes whose owne s we e indi iduals we e added o he p e ious amoun . Tab. 3: Dwellings by Owne ship Rela ions in 2007 and 2009 (in housands) a As o 31.12 Speci ica ion 2007 2009 Housing Associa ions 3,148 2,583 Municipali ies 1,157 1,063 Es ablishmen s 158 132 T easu y 65 57 TBS 68 79 Na u al Pe son 8,398 9,387 TOTAL 12,994 13,302 Sou ce: Small Polish S a is ical Yea book 2012, Cen al S a is ical O ice, p. 231 I should also be no ed ha i is he indi iduals who cons i u e he la ges sha e in he la s by p ope y ela ions in gene al and ha his sha e is g owing. Nex o he na u al pe sons in he s uc u e o he owne ship o he dwellings is he amoun owned by housing coope a i es. Membe s o hei coope a i e owne ship igh s o he p emises can also bene i om he o e o an in e ed mo gage. Such an owne ship s uc u e posi i ely con i ms ansac ions concluded in he e e se mo gage c edi . Conclusion As shown in he p eceding pa ag aphs o he a icle, he e e se mo gage is an al e na i e o a unc ioning annui y. And al hough bo h p oduc s a e a ge ed a he olde people owning 60 p ope y and designed o imp o e hei inancial si ua ion du ing hei “au umn o li e”, hey ea p ope y igh s in a comple ely di e en way. The e e se mo gage is an inno a ion o ou ime, a p oduc o inancial enginee ing, which is a o m o social enginee ing. I is a kind o “in en ion”, which will equi e social accep ance. Once deployed, i will ensu e he sa e y o bo h pa ies o he ansac ion. This p o ec ion is e ec i e, because i will be go e ned by he p o isions o he Banking Law, and hus supe ised by he Financial Supe ision Commission. Bo h he momen o ans e o he p ope y as well as he sa e y conside a ions si ua e his p oduc abo e he annui y. Cu en ly, in he absence o egula ion in he o m o he law o he e e se mo gage he e was es ablished a niche, on he Polish ma ke , which saw he en ep eneu ( o ins ance he Mo gage Funds) Howe e , hese s a e ins i u ions should o e a p oduc ha will be sa e, gua an eed, and will no lead o any abuse and en e he ma ke wi h p oduc s which a e in demanded. As a Vice-P esiden o he Associa ion o Polish Banks, he a o ney Je zy Bańka says “ac i i ies ca ied ou by exis ing in ou ma ke unds mo gage is a he “bo de o he law”. The p oduc called he c edi o annui y mo gage g an ed by hese unds is based on he egula ions con ained in he Ci il Code, ela ing o a con ac o li e. A pe son who has en e ed in o such an ag eemen wi h he und only ecei es a pension, wi hou eal suppo and help” [11, p. 162]. The e is a possibili y ha , in spi e o he owned land egis a ion by he sho ime he bank up cy comes o he ins i u ion esponsible o he paymen o annui y. Tha ’s why “... e e se mo gage can be an impo an sou ce o supplemen he household budge o e i ees due o he le el o legal secu i y o his ansac ion om he poin o iew o he elde ly” [11, p. 163]. Cu en ly, he e is a “good g ound” o he in oduc ion o he p oduc o he mo gage due o demog aphic de elopmen s, namely he aging popula ion. Demog aphic epo s show ha he numbe o people o e 65 is inc easing oge he wi h, he a e age li e expec ancy and he wa e o emig a ion while he e ili y a e is dec easing. A longe li e is a consequence o he gene al imp o emen o li ing condi ions and medical ca e, inc eased heal h, imp o ed sa e y and changed li es yle leading o a mo e heal h-p omo ing way o li ing. On he one hand, he longe li e is a eason o be happy, bu a he same ime he e is he p oblem o sol ency and he amoun o u u e pension bene i s. Declining e ili y and p og essi e emig a ion only wo sen he si ua ion. In addi ion, he ising cos o li ing compa ed o he indexed pension, educes he inancial esou ces he elde ly ha e a hei disposal. The e is also a poin ha he e e sed mo gage o annui y sligh ly imp o e he ma e ial lo o e i ees who ac ually decide on his “business”. Unde such opinions e i ees should he e o e conside o he ways o supplemen hei budge s, such as mo ing o smalle o cheape la s and hen loca ing he excess unds in he deposi Ren ie [15]. Bu men ally i is no easy, because he e is a widesp ead belie o "you can´ each an old dog new icks", because o he ac ha , his o m imp o es hei s household inances in he o m o changes in eal es a e o smalle o cheape , decides o a he li le olde . Li e a u e [1] BUSZKO, M.: Uwa unkowania unkcjonowania i ozwoju odw óconego k edy u hipo ecznego (Re e se Mo gage) w Polsce, w Finanse – nowe wyzwania eo ii i p ak yki. Bankowość. Edi o : A. Gospoda owicz. Wydawnic wo Uniwe sy e u Ekonomicznego, W ocław, 2011. ISBN 978-83-7695-156-0. 61 [2] CZAPIŃSKI, J.: Podsumowanie w Diagnoza Społeczna 2009. Wa unki i jakość życia Polaków. ed. J. Czapiński, T. Panek, Rada Moni o ingu Społecznego, Wa szawa, 2009. ISBN 987-83-61086-63-5. [3] GROTOWSKA, S.: S a y człowiek i jego odzina w nies abilnych czasach. Uwagi na ma ginesie ozważań o usługach społecznych wobec odziny. Usługi społeczne wobec odziny. Edi o s: A. Kubowa; J. Szczepaniak. Wydawnic wo Uniwe sy e u Ekonomicznego, W ocław, 2011. ISBN 978-83-7695-244-4. [4] IGLICKA, E.: Demog a iczne wyzwania dla ynków p acy, poli yk społecznych i bezpieczeńs wa eu opy Ś odkowej. Poli yka Społeczna. No. 1/2013, pp. 1-5, ISSN 0137-4729. [5] PAJESTKA, J.: De e minan y pos ępu. Czynniki i współzależności ozwoju społeczno- gospoda czego. Polskie Wydawnic wo Ekonomiczne, Wa szawa, 1975. ISBN 83-208- 0089-7. [6] PIETRASIŃSKI, Z.: Ogólne i psychologiczne zagadnienia innowacji. Pańs wowe Wydawnic wo Naukowe, Wa szawa, 1971. ISBN (-). 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