Skip to ContentSkip to Navigation
About usFEBNews / FEB

Retired house owners reluctant to redeem house value

26 November 2018
Eduard Suari-Andreu
Eduard Suari-Andreu

Dutch households are reluctant to cash in on their home ownership for consumption during their retirement. Although their own home is an important part of their total property, they don't see home ownership as a way to save for their retirement. The low willingness to liquidate the housing value is caused, among other things, by the fact that home owners regard their own home as an important part of inheritance for their children. These are the conclusions of Eduard Suari-Andreu, who will be awarded a PhD by the University of Groningen on 6 December.

The ageing population in industrialized countries is creating major challenges for the sustainability of pension and health systems. Although much transformation has taken place in the past few years to meet these challenges, a lot of work must still be done to guarantee that pension and health systems remain sustainable. Against this background, Suari-Andreu researched the capital accumulation and savings motives of older households. He used data from the Dutch National Household Survey (DHS), Statistics Netherlands (Centraal Bureau voor de Statistiek, CBS) and the Survey on Healthy Ageing and Retirement in Europe (SHARE). Suari-Andreu's findings are important for establishing whether current and future retirees are able to retain an adequate standard of living in the current fast-changing circumstances.

Leaving inheritance is an important savings motive

Suari-Andreu showed that leaving inheritance is an important savings motive for Dutch households, especially for individuals with large assets. He also concluded that wealthier people are more inclined to avoid inheritance tax by passing on assets to their children while they are still alive. Finally, Suari-Andreu found that receiving unexpected inheritance around the age of retirement appears to have no effect on the time of retirement or on the number of hours worked per week.

Contact

Last modified:06 June 2019 09.22 a.m.
printView this page in: Nederlands

More news

  • 11 July 2019

    SMEs in the Northern Netherlands embrace innovation

    Enterprises in the Northern Netherlands innovated plentifully in 2018 This has been revealed by the Northern Netherlands Innovation Monitor, an initiative of the Centre of Expertise Vinci of the University of Groningen (UG) in collaboration with the...

  • 11 July 2019

    Sjoerd Beugelsdijk editor of striking report ‘Denkend aan Nederland’

    At the end of June, the report ‘Denkend aan Nederland’ [Thinking of the Netherlands] conducted by the Social and Cultural Planning Office (SCP) garnered national attention on radio and television. Despite stark contradictions in public debate, the...

  • 11 July 2019

    Major companies’ annual reports too vague about climate impact

    Many major Dutch companies publish extensive information about climate impact in their annual reports. However, very few companies provide concrete, detailed information about their own CO2 emissions, the impact of climate change on their business...