“Home for Care”: Localized Exploration for Niche Pension Approach
As a supplementary pension approach, “home for care” already caught extensive attention in China more than ten years ago, and private organizations, government bodies, banks and the insurance sector have all carried out a series of practices and explorations. But in general, the public demand for this approach is largely restricted due to traditional ideas and many scruples, and the financial institutions are neither capable nor willing enough to finance this approach owing to a string of risks. Besides, the auxiliary policies haven’t been fully formulated and the institutional environment isn’t mature enough, so the “home for care” approach has developed quite slowly in the country. According to foreign experience, public support and recognition, government engagement and legal guarantee, mature industrial form, and diverse product design are all important guarantees for the development of “home for care” and are worth drawing on and improving. In the future, “home for care” will be a niche approach in China, but the potential market is not to be underestimated. We should specify the government functions, improve the institutional environment for this approach, encourage the cooperation of multiple parties, better “home for care” products, promote the idea of pension diversification, and deepen the rational understanding of “home for care”, so as to make full preparations for its long-term development.
KeywordsHome for care Reverse mortgage Traditional ideas Systemic risks Institutional environment
- Xu, S., (2016). “Difficulty in Promoting “Home for Care” in China and Study of Countermeasures.” Master’s thesis, Jiangxi Normal University.Google Scholar
- Chen, J., (2013). “Beijing: First Attempt at ‘Housing Bank for Elderly Care’ Fails.” Workers’ Daily 3.Google Scholar
- Li, Y., (2016). ““Home for Care”: Current Status, Problems and Selection of Paths.” China Real Estate 25.Google Scholar
- Mo, K., (2016). “On the Universality of Innovation of Elderly Care Financial Products Based on “Home for Care”.” Finance & Economy 19.Google Scholar