Savings for Old Age? Housing Wealth of the Dutch Elderly

Abstract

A combination of the demographic trend of an ageing population and the increase in wealth in owner‐occupied dwellings over the last decade raises a new research question in the Netherlands. How do the Dutch elderly spend their housing wealth and what can be predicted about their future behaviour? They may use their housing equity to provide an income in old age, or they may pass on their housing wealth to descendants. By compiling evidence available in the Netherlands, this article examines the use(s) to which the Dutch elderly put their housing wealth. The analysis is based on data, literature and information collected during interviews with elderly people. The main conclusion is that housing wealth will, for the greater part, keep on functioning as unused savings for the Dutch elderly for the foreseeable future.