Using ANOVA To Examine the Relationship Between Socio Demographic Variables and Acceptance Of Reverse Mortgage Loans

Abstract

Reverse Mortgage is a financial instrument designed to meet the retirement financial needs of golden agers. India as a country is experiencing population aging with improved health care, better living conditions and increased life expectancy. These loans were introduced in India in 2007 but failed to get the expected response. This study uses One-Way ANOVA (Analysis of Variance) to examine the relationship between various socio demographic variables and reverse mortgage loans. Variables such as a gender, marital status, type of the family and the financial knowledge have been used see if there is a significant difference   between the means of different groups.  The sample consisted of 112 senior citizens from all over India. A one-way ANOVA has been conducted to examine if there is a statistically significant difference between means of level of financial knowledge and awareness about RMLs in India; statistically significant difference between means financial knowledge and preference for reverse mortgage loan to fund their retirement needs. The results indicated that there is a significant association between level of   financial knowledge and awareness about Reverse Mortgage loans. Similarly, there exists significant association between level of financial knowledge and the choice of Reverse Mortgage loans.