Do most retirees still have a mortgage?

Asked by: Emil Leuschke DVM  |  Last update: June 22, 2026
Score: 4.4/5 (25 votes)

No, most retirees do not still have a mortgage. In fact, roughly 64% of homeowners aged 65 and older own their primary homes "free and clear" without a mortgage.

What percentage of people still have a mortgage when they retire?

Approximately 41% of homeowners aged 65 to 79 have a mortgage. This is a significant increase from just 24% three decades ago, indicating that more Americans are entering retirement with debt. For those aged 80 and older, over 30% still carry a mortgage, up from only 3% in 1989.

What is the biggest mistake most people make regarding retirement?

  1. Top Ten Financial Mistakes After Retirement.
  2. 1) Not Changing Lifestyle After Retirement.
  3. 2) Failing to Move to More Conservative Investments.
  4. 3) Applying for Social Security Too Early.
  5. 4) Spending Too Much Money Too Soon.
  6. 5) Failure To Be Aware Of Frauds and Scams.
  7. 6) Cashing Out Pension Too Soon.

What is the $1000 a month rule for retirees?

The $1,000 a month rule for retirees is a straightforward retirement planning benchmark suggesting that for every $1,000 of monthly income you want in retirement, you need to have $240,000 saved. Based on a 5% annual withdrawal rate, this rule acts as a simple, actionable goal to determine total savings needs. It is primarily a tool to visualize savings goals and supplement income sources like Social Security.

What percentage of 70 year olds still have a mortgage?

“What we also see in the data is that half of [repeat] home buyers who are in their 70s are taking out a mortgage,” Lautz said. “When we look at those who are in their 60s—so, younger baby boomers—what we see is that [about] 40% of those are paying cash, which means the majority, 60%, are taking out a mortgage.”

The True Cost of Retiring With a Mortgage — What It REALLY Means for Your Retirement Plan

16 related questions found

Do most people have their homes paid off when they retire?

According to the Center for Retirement Research at Boston College, the percentage of U.S. households over age 65 with some form of debt has increased from 38% in the late 1980s to 63% today — and mortgage debt makes up the lion's share.

What does Suze Orman say about paying off your mortgage early?

“Don't you want to feel safe in these seriously uncertain times — uncertain times about inflation, uncertain times about what the markets are doing, uncertain times about everything?” Orman asked. “The best way you can put certainty in your life is to own your home outright by the time you retire.”

Which 4 are the biggest retirement regrets?

5 of the biggest retirement regrets, and how you can avoid making the same mistakes

  • Not saving enough during your working years. ...
  • Waiting too long to start planning. ...
  • Retiring earlier than you can afford to. ...
  • Underestimating the true cost of retirement. ...
  • Not seeking financial advice sooner.

How many Americans have $1,000,000 in retirement savings?

Only about 2.5% to 4.7% of Americans have $1 million or more in dedicated retirement accounts (like 401(k)s or IRAs). While million-dollar nest eggs are rare, roughly 497,000 Americans were classified as "401(k) millionaires" in 2024. Among actual retirees, only about 3.2% have reached this $1 million threshold.

How much do I need to retire on $80,000 a year at 60?

To retire on $80,000 a year at age 60, you generally need a nest egg of approximately $2 million to $2.28 million. This is based on the 4% rule (multiplying annual income by 25), though a slightly higher amount is often safer for early retirement to cover a longer time frame.

What is the #1 regret of retirees?

The #1 regret of retirees is not retiring sooner. Many retirees wish they had left the workforce earlier while they still had better health and more energy to enjoy their free time, travel, and pursue personal passions.

What do most retired people do all day?

Retired people often spend their days engaging in a mix of leisure, health-focused, and productive activities, including gardening, hobbies, exercising (walking, yoga, pickleball), volunteering, and socializing with family. Many maintain routines involving home maintenance, reading, and watching news or entertainment, with a relaxed, non-alarm-driven schedule.

What is Dave Ramsey's warning on Social Security?

Ramsey warns that today's workers should not count on getting all of theirSocial Security because the program may, in the coming years, only have enoughmoney to pay about 83% of scheduled benefits unless lawmakers intervene.

When should retirees not pay off their mortgages?

Retirees should generally not pay off their mortgages if it drains emergency savings, triggers high taxes, or if the mortgage interest rate is very low (e.g., below 5%). Keeping a mortgage can be smarter if those funds can earn a higher return in investments, or if the liquidity is needed for living expenses.

What is the least desirable style house?

The 10 least desired home styles:

  • Tiny house (3.5 views)
  • Beaux arts (5 views)
  • Art deco (5.1 views)
  • New traditional (5.2 views)
  • Federal (5.2 views)
  • Art moderne (8.4 views)
  • A-frame (10.1 views)
  • Log cabin (10.9 views)

What is the average debt of retirees?

As of 2026, nearly 6 in 10 retirees carry debt, with a median balance of roughly $32,050. For households aged 65–74, average debt has risen to over $130,000, often driven by mortgages, while 97% of those aged 66–71 hold non-mortgage debt averaging over $11,000. Key drivers include credit cards, auto loans, and student loans.

What is the average net worth of retirees?

As of 2026, based on 2022-2025 Federal Reserve data, the average net worth for Americans aged 65 to 74 is approximately $1.79 million. However, this figure is heavily skewed by high-net-worth individuals, making the median net worth of $409,900 a more representative figure for the typical retired household.

What expenses do retirees often forget?

Whether you are planning for your future or already retired, here are six hidden retirement costs to factor into your retirement plan and budget.

  • Housing costs beyond the mortgage. ...
  • Health care costs. ...
  • Long-term care. ...
  • Financial support for family members. ...
  • Taxes on retirement income. ...
  • Inflation and its impact over time.

What do 90% of millionaires have in common?

According to various financial studies and widely cited commentary (often attributed to Andrew Carnegie), around 90% of millionaires invest in or own real estate. This asset class is considered a key pillar for building wealth, offering a combination of cash flow, appreciation, and tax benefits.

What is the happiest age to retire?

According to the 2024 MassMutual Retirement Happiness Study, 63 is widely considered the ideal or "happiest" age to retire, representing a sweet spot where retirees feel young and healthy enough to enjoy freedom, yet financially secure enough to step away. While this is the favored "dream" age, actual retirement patterns vary due to financial and health factors.

What is the average net worth of a 65 year old couple?

As of early 2026, the average net worth for American households aged 65–74 is approximately $1.79 million. This high average is skewed by top earners; the median net worth (midpoint) is a more realistic figure for many, sitting at around $410,000. Total net worth typically peaks at this age, driven by home equity and retirement savings.

What did Mark Twain say about retirement?

Mark Twain viewed retirement and old age not as a sedentary end, but as a time to "nestle in the chimney corner," reflect, and enjoy the privilege of survival. He famously joked that his longevity was due to a "severely moral life" involving heavy smoking, no exercise, and irregular sleep.

What is the first thing you should do when you pay off your mortgage?

Here are a few steps you'll need to take once you've paid off your mortgage:

  1. Collect documents from your servicer. ...
  2. Cancel autopay. ...
  3. Track down any escrow refund. ...
  4. Update your homeowners insurance. ...
  5. Pay your own property taxes. ...
  6. Contact your HOA, if you have one. ...
  7. Keep an eye on your credit score. ...
  8. Revisit your budget.

What are the four documents Suze Orman says you must have?

According to Suze Orman, the four essential documents everyone must have to protect themselves and their loved ones are a Revocable Living Trust, a Will, a Durable Financial Power of Attorney, and an Advance Directive for Health Care. These documents ensure your assets are distributed according to your wishes, avoid probate, and appoint people to manage your affairs if you become incapacitated.

Does Tom Selleck really believe in reverse mortgages?

Yes, actor Tom Selleck has been the paid celebrity spokesman for reverse mortgage lender American Advisors Group (AAG) (now associated with Finance of America) since 2016. He appears in television commercials encouraging older homeowners to use reverse mortgages to access home equity for retirement income.