Seniors donate their apartments for the pension. We uncover what amounts they truly get

The reversed mortgage is becoming an increasingly popular way in Poland to safe the financial fall of life. In exchange for the transfer of ownership to their home or home, the seniors receive a life-long cash benefit. In 2024, mortgage funds paid out almost PLN 7 million under these contracts, an increase of over 46% compared to the erstwhile year. This dynamic improvement shows that more and more older people are considering this form of improving their budget.

Although tempting, this solution raises many questions and doubts. Key are the real amounts that can be obtained and the conditions that request to be met. is simply a life pension truly a gold measurement for a low pension, or is it a financial trap that deprives a household of inheritance? We analyse who most frequently uses this instrument, what are the average payouts and what should be given peculiar attention before making a final decision. marketplace data shed fresh light on this complex financial product.

The reverse mortgage marketplace in Poland is growing. We know the numbers.

The data for the past year leave no illusions – the pension marketplace in Poland is experiencing a real boom. According to authoritative reports, in 2024 mortgage funds paid out to elder citizens together PLN 6.99 milliontho o 46.5% higher than last year. specified a leap demonstrates not only the increasing interest, but besides the expanding awareness of the existence of specified a solution among older people.

The increase can besides be seen on the scale of the full portfolio. The full value of the property, which was covered by life-long pension contracts, reached an awesome amount at the end of 2024 PLN 189 million. That's 19.2% more than a year ago. These figures show that the reverse mortgage becomes an crucial part of the financial marketplace and that the funds have an expanding amount of capital secured in real estate. For seniors, this means greater stableness and credibility of providers of specified services, which is crucial in making specified an crucial life decision.

This dynamics is simply a direct consequence to social needs. In a situation where systemic pensions are frequently not adequate to cover all the costs of living, elder citizens are actively seeking alternate sources of income that will let them to keep independency and decent surviving without having to leave their own home.

Who's most likely to get a pension for an apartment? image of a Senior

Data analysis allows to find precisely who is the statistical beneficiary of the reversed mortgage in Poland. It's key information to aid you realize who this solution is most attractive to. The average elder signing a life pension agreement has average 76.7 years. This is an age in which many people start to feel the effects of a low retirement while inactive wanting to live in a acquainted environment.

The property donated in return for the benefit besides has their characteristics. The average value of the contract flat or home is PLN 468.9 thousandand its average surface area is 51.4 sqm. These are typical apartments in blocks or tiny houses, which constitute the main property of many Polish pensioners. Geographically, the highest interest in reverse mortgages is observed in Mazowieckie Voivodeship, which is understandable due to the highest prices of real estate. Pomeranian, Lower Silesian and Silesian voivodships are followed.

Such a profile shows that single seniors or childless couples from large and medium-sized cities, for whom the transfer of assets to heirs is not a priority, are primarily chosen for life. Their current financial liquidity and the anticipation of peaceful surviving in their own 4 corners become more important.

How much can you truly get? Real amounts for life

The most crucial question for any elder considering a reverse mortgage is the amount of monthly benefit. marketplace data show that the average monthly pension paid in 2024 was PLN 1 445.9. At first glance, this amount may not seem advanced but should be placed in the appropriate context.

First of all, it is about 40% of the average pension paid by ZUS. For many people it is so a crucial injection of cash, which allows you to cover bills, buy drugs or simply rise the standard of living. Importantly, the benefit is paid for life, regardless of how long the beneficiary will live. Mortgage funds calculate the hazard based on an estimated life expectancy of 11 years for current customers. This means a warrant of permanent income for a long time.

However, it is worth remembering that the amount of the pension is calculated individually for each contract. It depends on respective key factors, specified as:

• Age and sex of senior – the older the person, the higher the benefit, due to the fact that statistically they will collect less.
• Real property value – the more costly the flat or house, the higher the possible pension.
• Property Location – housing in large cities with a unchangeable marketplace is valued more favourably.

It is so crucial to get respective independent valuations and offers from different mortgage funds before taking a decision.

Reverse mortgage: chance or risk? Advantages and disadvantages of the solution

The decision to usage the pension for life is 1 of the most serious that a elder can take. There are both crucial benefits and serious consequences that request to be carefully considered. The main advantage is the immediate and tangible improvement of the financial situation without the request to sale the flat and move. In the context of data saying Only 17.2% of Poles regularly retireThis form of extra income becomes for many the only viable alternate to surviving on the brink of poverty.

However, the most crucial and fundamental regulation is ownership. Signing the contract means that after the death of the senior, the property is transferred to the property of the mortgage fund and does not form part of the inheritance. This is simply a key information for those with children or another relatives who want to transfer their property. This is so a solution aimed mainly at single people or those who for various reasons do not plan a agenda for heirs.

In conclusion, the reverse mortgage is simply a two-faced financial instrument. On the 1 hand, it gives safety and stability, on the another hand, involves the final waiver of the right to have the largest asset. Therefore, the experts unanimously stress: the reverse mortgage decision must be preceded by an in-depth legal consultation and an in-depth financial analysis. delight carefully read the contract, realize all its records and compare offers to choose the most favorable and safest.