More Seniors Are Retiring With Mortgage Debt — And It’s Taking a Toll
Mortgages make up nearly 70% of household debt balances, and conventional wisdom has long advised paying off the mortgage before retirement. But over the last three decades, that picture has changed. More older adults are entering retirement still carrying a mortgage — and the amount they owe has risen sharply, adding to financial insecurity for many.
The tradition of entering retirement mortgage-free was once celebrated, even with symbolic “mortgage-burning parties” that became popular in the 1950s and 1960s. A 1969 episode of the TV show Mayberry R.F.D. captured the spirit when the character Emmett torched his mortgage papers as a sign he could finally retire and enjoy life.
Today, however, those celebrations are a relic. According to Harvard University’s Joint Center for Housing Studies, the share of homeowners ages 65 to 79 with mortgages climbed from 24% to 41% over the past 30 years, while their median mortgage debt increased by 400%. Among those 80 and older, the share with mortgages jumped from 3% to 31%, with debt levels soaring by 750%.
“This isn’t a choice or a financial strategy for many people — it’s a reality,” said Jennifer Molinsky, director of the Housing an Aging Society Program at Harvard’s Joint Center.
Her point is echoed by Linna Zhu, research analyst at the Urban Institute:
“For wealthier homeowners, maybe carrying mortgage debt might be a strategic choice, but for most older adults living on fixed incomes, it’s not a strategy — it’s a necessity. The stress of housing debt in retirement is real and growing.”
The financial strain is clear. An all-time high number of older homeowners are considered “cost-burdened,” meaning they spend 30% or more of their income on housing, utilities, taxes, and insurance.
Molinsky noted that 97% of lower-income homeowners with mortgages — those earning less than $25,000 a year — are cost-burdened.
That leaves older homeowners financially vulnerable, according to Amalie Zinn of the Urban Institute:
“There could be a health shock, a major home repair, or a climate-related event. Many seniors live in homes they’ve owned for decades, and unexpected costs like a roof replacement or a broken AC can create serious hardship.”
The trend in mortgage debt reflects a broader reality: more older adults are entering retirement carrying significant debt. Those monthly payments reduce what’s left for essentials such as food, healthcare, and home maintenance — let alone leisure or savings.
📌 References:
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Harvard Joint Center for Housing Studies, Housing America’s Older Adults reports
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Urban Institute research on housing and financial security for older adults
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Quotes from Jennifer Molinsky (Harvard JCHS), Linna Zhu (Urban Institute), and Amalie Zinn (Urban Institute), as reported by [CNBC / Natalie Wu, July 2025].