Do Europeans Release Their Housing Wealth in Old Age?

Abstract

Growing pressure on the public pension systems of European countries induced by an increasing life expectancy, changes in the age distribution of the population, the indebtedness of many European public households, as well as the current low interest environment suggests a need for a change in the public pension policies. The encouragement of an asset-based private pension provision is already a policy goal of most European countries. A high level of private household wealth enables elderly to finance a significant portion of their old age expenses by liquidating accumulated assets.