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Overview
For many individuals and families, real estate is their most important asset, whether as a primary residence or investment properties providing rental income. Furthermore, housing is often the only significant asset for those with no other sources of retirement savings. In light of recent events, it is difficult to pick up the newspaper without reading about the effects of the downturn in housing prices and its related impact on other financial markets. Clearly, many retirees and those near retirement who have concentrated assets in real estate have been or will be placed in a position of risk that they may not have anticipated. In particular, those who may have planned to use housing equity to finance their retirement may no longer be able to do so for the length of time anticipated.
Given the confluence of these events, a number of questions come to the forefront. What are the current housing issues for those nearing retirement and in retirement? What future housing issues are likely to confront retirees? What are the strategies and approaches to deal with these issues? These questions and other related ones are the motivation for this Call for Papers.
Content
To expand thinking on housing issues in retirement, the Society of Actuaries' Committee on Post Retirement Needs and Risks is issuing this Call for Papers, inviting researchers, practitioners and other professionals to explore this issue from a variety of perspectives.
The Committee is seeking to compile papers that represent the latest in thinking about housing issues related to retirement planning and financing. It is the goal of this effort that taken together, the chosen papers will provide a multi–disciplinary, textured analysis of the topic.
Authors may submit either original research or expository papers. The papers have no required minimum or maximum length.
The following is a list of potential issues that authors may wish to consider. Please note these issues are only intended to serve as examples and are not meant to restrict potential ideas in any way:
Housing Wealth
- What is the role of housing wealth in financing retirement?
- What are the recent trends in the use of housing wealth? How effective are financial planning strategies of utilizing housing wealth to address retirement needs and risks such as health care and long-term care expenses? How will/should future generations use housing wealth?
- What is the demographic and socio-economic profile of those who intend to draw down their home equity through products such as reverse mortgages versus those who intend to maintain the equity and pass it on to heirs?
- What are the trends in the level of housing debt that those entering retirement have assumed or are willing to assume? Is the amount growing, shrinking, or stable? Who is taking on this debt? How can homeowners protect themselves from declines in housing values?
- What is the nature and extent of the risk posed by adjustable rate mortgages and by predatory loan practices to the elderly?
- What are the mechanics and prevalence of reverse mortgages and other similar products?
- What future products might increase the appeal of reverse mortgages and other financial products linked to housing?
- What are the differences between the public and private markets for reverse mortgage products?
- At what point in the lifecycle is it most beneficial to acquire housing wealth? Should the timing be as early as possible or should it be delayed to allow investments in other financial vehicles? How does this mesh with liquidity needs?
- What is the interplay between financial and emotional considerations in decision-making about the use of housing wealth to support retirement?
- How can insurance and/or annuities be used in combination with home equity approaches to fund retirement?
Housing Options
- How do housing options such as gated communities, independent living, group homes, assisted living, and other specially designed facilities or areas interplay with financial and life planning considerations? What other housing options exist, and how do housing choices vary at different stages of life?
- What new types of communities and housing might be developed to meet retirement needs? What special services might they offer?
- How common is it in retirement to have multiple residences among middle income retirees and to do so as a financial strategy?
- What are the mechanics, benefits, and drawbacks of continuing care communities?
- What factors are most important in deciding whether to remain in a long term residence or to move? What are the most important considerations for locations to move? How should financial considerations be balanced against others?
- How can public policy support future baby boom retirees and others in housing needs and options?
- What is the link between housing choices and pursuing desired activities that were not possible prior to retirement?
Housing Spending
- What is the impact of housing spending on other types of spending in retirement?
- What are the advantages and disadvantages of different timing patterns for paying off a primary mortgage?
- What is the maximum percentage of wealth that is reasonable to invest in housing at various stages of life?
- What types of housing-related expenditures are most prevalent in retirement?
- What are the recent price trends of various housing options, e.g., assisted living facilities, retirement communities, etc.? What are the recent trends of utilization and affordability of various housing options among different income groups?
- What percentage of total spending in retirement do housing-related expenditures represent? How does this vary at different stages of retirement?
As mentioned above, this is just a sample of issues that may fall under the scope of this Call for Papers. Authors may also combine several issues when developing their abstracts.
Procedure for Submission of Abstracts
Please submit an abstract or outline of your proposed paper by September 15, 2008 to:
At a minimum, the abstract submission should include a brief description of the subject of the paper, a list of key items to be covered and a brief biographical paragraph summarizing the author's experience, prior publications and presentations and contact information.
Procedure for Reviewing Abstracts
Submitted abstracts will be evaluated by a review group for their potential for presentation at an SOA-sponsored event targeted in 2009. The exact dates and details will be decided at a later time.
Abstract submissions will be accepted, accepted subject to revision or declined. The review group is scheduled to complete its evaluation of the abstracts/outlines in October 2008.
Submission of Papers
All papers must be based on accepted abstracts and submitted in a complete format no later than March 31, 2009.
The procedure for submission of papers includes the following specific guidelines:
- Submissions that have a copyright must be accompanied by written permission to reprint.
- Submissions should be made electronically to Sue Martz at smartz@soa.org.
Publication and Presentation
The review group, after receiving all submissions, will determine if a meeting event for presenting the papers is appropriate. Should this occur:
- It is anticipated that travel and lodging expenses for authors selected to present at the event will be reimbursed, up to certain limits.
- A final determination as to the number of papers invited to present will be made after all abstracts have been submitted and reviewed.
It is anticipated that all accepted papers will be published. The papers will appear in an on–line monograph and, where appropriate, in Society of Actuaries publications. Upon author request, accepted papers may also be submitted to peer–reviewed journals. Authors can submit their papers to other publications provided that the Society of Actuaries can maintain the right to publish the papers.
The Society of Actuaries prefers to publish all papers and to copyright all published papers without a previous copyright. However, it will work with authors as necessary for special publication situations.
The Society of Actuaries reserves the right to reject or not publish any papers not meeting the criteria and standards set by the review group.
Questions
Please direct any questions regarding this Call for Papers to:
- Steven Siegel, Research Actuary
- Society of Actuaries
- ph: 847.706.3578
- f: 847.273.8578
- e–mail: ssiegel@soa.org