The central government plans to launch a pilot program that will offer reverse mortgages to the elderly next year.

Experts and insiders said this financial tool may give some elderly people a higher income, but potential problems include the 70-year leasehold on property and the widely accepted cultural norm that real estate should be inherited by the owner's offspring.

A statement on the website of the Ministry of Civil Affairs on Monday said that the pilot program, if successful, will help senior citizens with their financial difficulties by enabling them to make better use of their housing resources, and it will also expand the business opportunities of insurance companies and financial institutions.