The aging society also poses particular challenges to the credit system. More and more older people want a loan. Credit in spite of retirement will probably be the norm in a few decades. However, lending to the elderly is clearly limited today. Where there are problems and which solutions are available, the article provides the facts.
The loan despite pension – the history of the credit obstacles.
Retirees and retirees should be particularly popular in lending. The loan despite pension would actually booming. Retirees have a stable fixed income until the end of their lives. Most people do not have a job they could lose. The revenue, albeit at a lower level, has remained out of working life. Handling money and avoiding unnecessary costs, who could do that better than people who have a lifelong experience? Nevertheless, it is particularly difficult for pensioners to get a loan request approved.
The reasons for rejecting a loan can be divided into two large subgroups. For pensioners, it is above all the age limit that makes lending difficult. The income is usually enough to prove the repayment ability. For pensioners, the solution to the credit crunch is accordingly easy to find. Some modern providers have significantly raised the age limit for lending or completely abolished it. However, these banks would like to be aware of the increased risk of death through a loan loss insurance policy. Such insurance in old age is extremely expensive, but so remains for pensioners the money market.
What about lending for retirees?
Pensioners not only have to struggle with age limits when they want to borrow. For them, it is above all the income level that is insufficient for repayment ability. The pension level has been significantly reduced by the legislator in the last 10 years. Apart from a few meters on the second decimal place in the pension increase in 2012, there were in fact no increases. Every year, inflation cuts pensions by about two to three percent. The topic of old-age poverty is therefore increasingly being taken up in the media. Above all, the retirees are affected by this problem.
The solution for the loan despite pension can therefore be made for the majority only by the intervention of the younger generation.
A younger relative, who is still fully at work, acts as guarantor or co-applicant for the pensioner. This will close the credit gap. The guarantor hardly has to worry. The will to repay is extremely strong in older people. They have taken credit for a lifetime and also repaid it. The obligations arising from a loan are perfectly clear to the pensioner generation. The loan despite pension is thus in the best hands.