1 minute read
In this month’s feature story, we talk to famed economist and Nobel Prize winner Robert Merton about the importance of reverse mortgages. As part of his ongoing research on retirement funding strategy, Merton has embraced reverse mortgages as key to solving the retirement income crisis.
This crisis, according to Merton, is not confined to the U.S. as the baby boomer generation ages; it is a global phenomenon, happening in countries around the world as life expectancies increase.
Merton predicts that the concept of a reverse mortgage will be adopted on a global scale, pointing to several countries that have already created successful equity release programs. In the future, Merton says, people will inevitably turn to their home equity to support themselves in their advanced age.
Merton travels around the world to speak at financial summits, and his praise of reverse mortgages has garnered considerable attention. With adamant support from someone as prominent and respected as Robert Merton, perhaps the larger financial community will come to see the value of the product.
