Almost two weeks ago, in the ZF, based on an analysis from Business Insider, it was an extremely read news-53,000 views: from the need for additional income, the Poles who have come to retirement begin to think of a way to increase their income, respectively an inverse mortgage, ie a life rent. This means the transfer of the property right over their home to a financial institution, and instead they receive a monthly payment and the guarantee to live for life in that property. The average age of the Polish customers who resort to this solution is 76.7 years, and the average value of a transferred property is 110,000 euros, with an average area of 51.4 square meters. Based on the average life expectancy of the Poles, those who resort to this way to receive a living rent live 11 years. This business model is present in America and in the Western market, but is less present in former communist Europe. In Romania, not many people are thinking of resorting to this solution to get some more money at retirement. Now, it is a taboo topic for the generation that is today, that is Baby Boomers, but for the generation that will go out for over 10 years, that is, the generation of decrees, is an idea that will be at the discussion table. When you retire, the decrease in income is quite drastic, the pension being around 40% of the winnings since you were employee. The pension II pension is not as large as the rhetoric around Pillar II of pensions. In order to take a big pension in Pillar II, you should have had monthly winnings of tens and hundreds of thousands of euros, or not many Romanians can say that they were in this situation. I believe that the generation of decrees will begin to study ways to have higher earnings than pension, especially since they were used to a certain level of living. The bank's savings, investments on the stock market are there, but the earnings are extremely risky. Today you can win on the stock exchange, tomorrow you can be on an action that decreases and you can see your investment being reduced immediately. The decrees will retire with the apartment or apartments, especially since those who had multinational salaries have invested in the purchase of apartments to give them later. The decrees had the chance to take some good positions, especially in multinationals, they had the chance to put some money aside, they had the chance to walk in the world. If the parents or grandparents of the decrees did not have this chance because they have taken the last years of the communist period and the dramatic decade of the capitalist period, the decrees, with the opening of the borders, had the chance and the money to see the world. At the pension they will want to maintain their standard of living and have the opportunity to continue traveling. So the solution of an inverse mortgage or the variant of a Lease Buy Back, meaning to sell the property in which you stay, but to rent, will be on the table. If parents and grandparents did everything to help children buy a home, I think the generation of decrees will no longer have this desire to leave the real estate property. Especially since the family quarrels related to the inheritance are quite present. Probably the decrees will ask the question if it would not be better to use their property either through a life pension, or through a Lease Buy Back, or through other financial instruments to make cash in order to walk and enjoy life. These ways to capitalize on the property will give rise to family discussions, but I believe that the generation of decrees will overcome this and will call for these financial instruments to be able to walk around the world. That is, if not the money obtained by capitalizing on the properties will be used to pay invoices, for the years when the age and health of each will speak their word. There is an unwritten agreement in us, by which the children take care of their parents when they can no longer take care of themselves, in exchange for the transfer of property and the financial assets accumulated in decades to children. I believe that the decree will have at least 10 years of life better after retirement at 65, maybe even 15 years. After 75-80 years, wear begins to make its presence felt. At this moment, the Romanian society is not prepared for such products, in which the elderly can use their assets, properties held, because the idea of leaving an inheritance an apartment is extremely valid. But in 10 years I believe that the opinions will be the tone and the decrees entering the retirement will look to the right and to the left to capitalize on their own real estate and financial assets, to maintain their wellbeing status. If that means selling the property either through a living rent, or through Lease Buy Back, this is. It will be seen what the children will say, who will realize that the parents will go on the idea of being better, to have a good active life, with money, not with a pension from one month to another. But that means that their descendants, that is, the children, will be widowed by an inheritance that would have made their life better. To see then family discussions when your parents want to stay on the Azure Coast for a week with the money from the «inheritance» of the children. This opinion first appeared on Business Magazine.
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