This paper discusses the current trends of Retirement Income Systems in several developed countries. It then explores the characteristics of the housing markets in these countries. The paper’s objectives include an exploration of the role of housing in providing retirement wealth and income. It sets out instances where consideration of both pensions and housing simultaneously can lead to favourable outcomes.
It is hoped that this paper will encourage a long-term broadening of actuarial activity in three areas. First, that actuaries already involved in Retirement Income Systems (both as practitioners and influencers of public policy) will incorporate housing into their framework, along with pensions and social security arrangements. Second, that those actuaries that advise individuals on pension issues will also consider housing implications. Third, while there are a small number of actuaries already involved with housing (for example, through bank financing), there is scope for significantly more actuarial involvement in the many facets of housing, such as financing (current and innovative), supply and demand, taxation and social issues. It is also hoped that increased public discussion will be held regarding the relationship between housing and Retirement Income Systems.
