State support for the elderly in residential care homes: the effectiveness of financial assistance

In Spain, the population is ageing at a seven-mile pace. The National Institute of Statistics (INE) estimates that there are 9.4 million people over the age of 65 living in our country. Of these, 89% are homeowners. However, according to the Ministry of Social Security, almost 15% of pensioners in Spain receive a monthly pension of less than 700 euros. This circumstance leads to many older people experiencing financial problems during their retirement and having to seek help or financial solutions that can supplement their pension.

There are now a variety of financial options available to older people to supplement their pension. In the private sector, the most popular are life annuities,''nude property, reverse mortgages, secure tenancies and the Pensium program. As far as the public sphere is concerned, the most demanded aids are those related to economic benefits provided in connection with help with care in a family environment and services. The percentage of public places and people receiving a benefit related to the private place service is particularly high. In contrast, the use of financial solutions in the private sector is much lower.

In Spain, "we are still culturally attached to leaving an inheritance to our loved ones, and often older people do not want to lose property and transfer obligations to their descendants," notes Libertad Alvarez, commercial director and social worker of the group''Amavir. Almost 15% of pensioners in Spain receive a monthly pension of less than 700 euros. Public economic benefits must be requested in accordance with Law 39/2006 of December 14, on the promotion of personal autonomy and assistance to persons in a state of dependency. Thus, the amount of the benefit related to a service or service check can vary according to income and degree of dependency, classified from degree I with 313.5 euros/month to degree III with 747.25 euros/month. In this respect, the Amavir Group offers advice on finding sources of financing. "We advise both Amavir residents and people who call or come to us to get information about our centers, both for generating additional income and staying''home and to obtain a place in the residence,'" Alvarez noted.

The director of the Bioethics Committee of the Amavir Group continues to emphasize that "when a person - resident, family and loved ones or both - call us or visit one of our residences, we inform them about the public and private part, since most of our centers have agreements with the state and have authorization to receive the benefit associated with the service (service check).

Spain is home to 9.4 million people over the age of 65, according to estimates by the National Institute of Statistics (INE). In this respect, the Pensium program allows regular contributions of up to double the rent due to the availability of properties available for rent. This assistance makes it possible to pay for a stay in a nursing home or to help relatives care at home. A reverse mortgage, on the other hand, is a mortgage loan that produces rent that accumulates as housing debt, allowing liquidity through real estate without losing''ownership or right of use or enjoyment of the dwelling. The maximum amount the bank can lend is equal to the value of the property, so to repay the mortgage you must repay the full amount received as well as the cost of the loan. This solution is an alternative for people over the age of 65 or with a recognized level of dependency, as well as those with disabilities at or above 33%. With a reverse mortgage, the senior receives a monthly income without losing ownership of their home and can cancel at any time if they repay the amount of accumulated debt. The Amavir Group offers advice on finding these sources of financing to improve the quality of life for seniors after retirement.

In the case of''life. This is a type of loan that is notarized and creates a lifetime contract, the amount paid depends on the value of the property and age at closing. The transfer of real estate is exempt from personal income tax if the seller is over the age of 65. In addition, one of the main advantages of this solution is that the buyer pays the maintenance and management costs, while the seller only bears the normal costs of use.

Additional News