Do Reverse Mortgages Reduce Poverty Rates Among Older Adults Living Alone in Spain? Analysing Their Overall and Gender-Specific Effects

Abstract

This paper investigates the potential of reverse mortgages (RMs) to alleviate poverty among older adults living alone in Spain, focusing on both general effects and gender-specific disparities. Using a combined income-wealth approach, the analysis highlights the role of housing equity, which is often the primary asset for older homeowners. While previous research has examined the impact of RMs on poverty rates among the broader population aged 65 and over, this work narrows its scope to single-person households, a growing and particularly vulnerable subgroup facing significant economic and social challenges. The findings reveal that RMs can reduce poverty rates, improve the financial well-being of these households and decrease gender disparities. Thus, the work shows RMs as a policy tool to improve the economic situation and quality of life for older adults living alone and underscores the need for targeted strategies to address gender-specific vulnerabilities.