Many Retirees Still Carry Six-Figure Mortgage Debt According to Fed Data
Federal Reserve data reveals that many American retirees still carry significant housing debt well into their later years. While the percentage of households with mortgage or home-equity balances declines after age 55, more than a quarter of those aged 75–84 and nearly one in five over 85 continue to owe money on their homes. Median loan balances remain above $100,000 through age 84. Carrying mortgage debt into retirement can impact financial stability due to reduced income sources and potential healthcare costs. Retirees with a fixed monthly payment may have less flexibility in the face of unexpected expenses or market downturns. However, if interest rates are low and paying off the loan would deplete necessary savings, maintaining the debt could be financially prudent. The data highlights that mortgage balances often persist due to late-life home purchases, refinancing, divorce, remarriage, or other life changes. Retirees must weigh their financial priorities carefully when deciding whether to keep a mortgage.