Search Results (3)

This paper introduces an innovative sell-type home reversion product aimed at monetizing Singapore’s public flats, serving as a new alternative to the existing Singapore Lease Buyback Scheme (LBS). This new product not only retains the LBS’s guaranteed period of residence in the property along with life annuity incomes but also enhances the product features to meet specific homeowner needs, including the ability to age in place, flexibility in retaining part of the property, options for bequests, and guaranteed principal return. By incorporating these additional features, the new product seeks to stimulate greater demand for monetizing public flats among asset-rich but cash-poor homeowners. An actuarial pricing model is developed to establish a transparent and fair framework for justifying the cost of each product feature. Additionally, we present a cost–benefit analysis from both the provider and consumer perspectives to highlight the major contributions of the new product when compared to the LBS. Full article

Loan-type reverse mortgage plans and sell-type home reversion plans for retirement financing are two well-known equity release plans that entitle homeowners not only to release cash from their properties but also to allow them to age in place. Recently, a new hybrid equity release plan was proposed to incorporate the home reversion plan’s features with an option of staying in the property for a fixed period without being subject to survival. This additional option provides flexibility to homeowners to better meet their retirement financial and personal needs by reducing the financial uncertainty of home reversion products. In this article, we propose an enhanced home reversion plan with some new features to meet retirees’ other financial needs, such as life annuity incomes and guaranteed return of principal invested. An actuarial framework is provided to analyze the cost components of each benefit offered under the enhanced home reversion product. Numerical illustrations are presented to demonstrate and examine the actuarial values of the benefits and product risks with different parameter configurations under the recent Singapore mortality data set. Full article

Water sharing within the states/provinces of a country and cross-border is unavoidable. Conflicts between the sharing entities might turn more severe due to additional dependency on water, growing population, and reduced availability as a result of climate change at many locations. Pakistan, being an agricultural country, is severely water stressed and heading toward a worsening situation in the near future. Pakistan is heading toward water scarcity as water availability in the Indus basin is becoming critical. Being a downstream riparian of India and Afghanistan in the Indus basin, water availability depends on the releases of water from both countries. The Indus Water Treaty is governing the water distribution rights between India and Pakistan. However, there exists no proper agreement between Pakistan and Afghanistan and the construction of new dams on the Kabul River is another threat to water availability to Pakistan. Correct implementation of the Indus Water Treaty with India is required, together with an effective agreement with Afghanistan about the water sharing. In addition to water shortage, poor management of water resources, inequitable sharing of water, lack of a systematic approach, old-fashioned irrigation practices, and growing agricultural products with large water footprints are all exacerbating the problem. The water shortage is now increasingly countered by the use of groundwater. This sudden high extraction of groundwater is causing depletion of the groundwater table and groundwater quality issues. This water shortage is exacerbating the provincial conflicts over water, such as those between Punjab and Sindh provinces. At one end, a uniform nationwide water allocation policy is required. At the same time, modern irrigation techniques and low-water-footprint agricultural products should be promoted. A fair water-pricing mechanism of surface water and groundwater could be an effective measure, whereas a strict policy on groundwater usage is equally important. Political will and determination to address the water issues are required. The solutions must be based on transparency and equity, by using engineering approaches, combined with comprehensive social support. To develop a comprehensive water strategy, a dedicated technopolitical institute to strengthen the capabilities of nationwide expertise and address the issues on a regular basis is required to overcome the complex and multidimensional water-related problems of the country. Full article