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Almost half of all retirees have heard of reverse mortgages. This was the finding of a recent study by the German Society for Reverse Mortgages (DEGIV). However, only 31 percent of those surveyed know exactly what it is and how it works. Here's the summary:

With a reverse mortgage, seniors sell their home but retain a right of usufruct. Payment is made either as a lump sum, a monthly annuity, or a combination of both. This allows seniors to supplement their retirement income. The concept is becoming increasingly popular, as a study by Deutsche Leibrenten AG showed. One in five homeowners over 65 is considering a reverse mortgage. With growing awareness of the concept, this number could increase further.

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