This study examined the amount of funds available from home equity conversation or reverse annuity mortgages as income supplements for elderly people with different characteristics. Based on analysis of the 1989 Survey of Consumer Finances, substantial funds would be available. Information from this study can be useful in advising clients about alternatives for financing elder care, solving financial problems, or increasing income for special needs and wants.

Key Words: Reverse mortgages, Elderly, Home equity conversion, Survey of Consumer Finances

1. Flora L. Williams, Associate Professor, Family & Consumer Economics, Department of Consumer Sciences & Retailing, Purdue University, West Lafayette, IN 47907-1262, Phone: 765-494-8297. E-mail: floraw@purdue.edu

2. Y. Emily Kao, Business and Econometric Analyst/MIS manager, Lucent Technologies, 67 Whippany Rd., Whippany, NY 07981. E-mail: ekao@lucent.com