Reverse mortgage market in Poland sees growth in 2024

In 2024, reverse mortgage products in Poland continued to expand, with mortgage funds disbursing nearly PLN 7 million in lifetime annuity payments to clients—marking a 46.5% year-on-year increase. These figures come from the latest report by the Association of Financial Enterprises in Poland (ZPF), which analyzes the state of the reverse mortgage market, particularly in the sales model where clients transfer property ownership to financial institutions in exchange for a guaranteed lifetime income and residence.

The average value of properties involved in reverse mortgage agreements reached PLN 468,900 in 2024, with an average size of 51.4 square meters. Most clients opting for these agreements were between the ages of 75 and 80, with the average client age at 76.7 years.

The cumulative value of lifetime annuities paid out by mortgage funds since 2010 has exceeded PLN 41.2 million. The total value of properties managed under such agreements reached PLN 189 million by the end of 2024, an increase of 19.2% compared to the previous year.

The monthly benefit received by clients varies based on factors such as age and the value of the property. On average, these payments amounted to about 40% of a typical pension from the Social Insurance Institution (ZUS). Based on life expectancy, clients are expected to receive annuity payments for approximately 11 years, according to Agnieszka Kozioł, head of the ZPF Report and Analysis Department.

Geographically, the majority of properties involved in reverse mortgage contracts are located in the Mazowieckie Voivodeship, followed by the Pomeranian, Lower Silesian, and Silesian voivodships.

Despite the growth of reverse mortgage solutions, retirement saving remains low among Poles. According to a survey by ZPF and the Institute for Economic Development at the Warsaw School of Economics, only 17.2% of respondents reported saving for retirement. In contrast, more immediate financial goals such as vacations (37.4%), home renovations (29.5%), and purchases of durable goods or vehicles are prioritized more frequently.

Nevertheless, there has been a gradual increase in retirement saving awareness. A decade ago, only 4.4% of Poles considered retirement savings a priority, and in 2008, the figure was just 2.5%. The upward trend, although modest, suggests growing recognition of the need to secure financial stability in later life.