A study on factors affecting mortality risk of home pension participants in South Korea using the Cox-proportional risk model

Abstract

The accumulation of empirical mortality data since the introduction of the home pension (reverse mortgage) system in South Korea has enabled the identification of key factors that influence the mortality risk of participants. Using the Cox proportional hazards model (Cox-PH), this study finds that older age, being a single male, enrollment with third party assistance, and living with family members other than a spouse are significant predictors of increased mortality risk. In addition, participants with lower incomes, lower-valued homes, and single-family homes also face higher risks. These findings underscore the need for targeted policy interventions to mitigate mortality disparities and improve system equity. Furthermore, incorporating differential monthly payments that reflect mortality risk factors into the home pension actuarial model can address adverse selection and improve the sustainability of the system.