Mortgage burden crimps retirement plans: study

Are you kidding me? I'm 46 years old and I am agree at myself for still having 6 more years left on my mortage. It should have been paid off by 45 which was my initial goal from my Financial Plan. However, losing a job for 8 months and then having to care for an elderly parent for 5 months (leave of absence) simply postponed things. I would say that both these circumstances were not expected but I also understand that life does throw you a curve ball sometimes. Having said that, my house will still be paid way before I retire. I live a very good life, decent paying job and have 3 kids. So it's hard for me to understand how so many retire with debt unless they were simply living above their means or some dire unfortunate curve balls? We can't all blame too much taxes. This is something we can surely control, no?

We have been mortgage free for two years. Ages 55/50 Wetravel 4/5 times year and put two sons through university (one more to go) also I have worked only parttime since being married. We never overspend and always pay credit cards 100% (We have earned many free trips(plane) for our strict credit card use and paying. It can be done its called smart spending.

i too will have my mortagae paid off before I retire. A lot of problems do have to do with spending habits and lifestyle choices. My spouse and I have been together a long time and neither of us has made the large dollar but together, manged correctly, we have done alright. I speaking with people in my age group a lot would have been mortgage free but their marriages ended in divorce and they have had to start over after years of building. I do attribute the divorce rate to some of this.

Ok This may seem a little selfish but.... I wouldn't donate that much of the money to charity. I would by myself a house as I don't have one of my own and everything for it, a car, repair both my parents houses, give some to my brother, set up a collage fund for my nephew, take my whole family on a trip. I would how ever if I won a big amount since I wouldn't need to work, I would donate a lot of my time to charity/orginizatons(ex: cancer center at the hospital in Regina and maybe some women shelters and places for the disabled)

@ Don.
You hit it on the nose with the comment " a lot would have been mortgage free but their marriages ended in divorce". I however disagree with your comment: "I do attribute the divorce rate to some of this."
I think it plays a big role, not just 'some' role.

It happened to me, had a house paid for by 1986. Lost it in divorce. Had my current house paid by 1995. Retired 10 years later. To do that, I did not to the yearly big trips to warmer climes or to Europe like my aquaintances. They are my age and still paying mortages and some did not even divorce.

You have a none crystabal future when a divorse at 57 with a plant clorsure bankrupsy,had house payed off,then 85% morgage and housing market crumbles in area because of factory clousures
had to move to another area for work. Talking to my fellow workers I'm not the only one some of you are lucky with good companies and care about their workforse When they go broke you are lucky to get a red cent.

I can't believe these numbers, they are atrocious. I have my house paid off (age 38) and I don't even live in Canada. I've had decent renters in it for a decade and sent top up money but really I could have finished it earlier than when i did if i didn't have another house overseas.

I wouldn't make more than $50,000/year Canadian. if that's what you are thinking. I'm not rich by any means but i have no debts perhaps that's why I'm light years ahead of people.

Oh..i forgot to mention that people with mortgages at these ages should be ashamed of themselves. Do you know the saying 'save for a rainy day'? Well, it happens! Canadans really spread themselves too thinly and stuff happens, plan on it.

That's why you should have an emergency fund of 6months salary mimimum. Most people don't have 6weeks, don't be one of them. Excuses are like ....... everyone has one. Tales of woe, everyones' got those as well but at the end of the day....you should have planned on it better.

I simply can not fathom how a person, even a single income family could not be out of debt by the time they are 50 let alone 55,60 or 65.....perhaps you people were raised poorly by your parents.

Yes "don," starting over and debt seem to go hand in hand in most cases. There is a reason I try to tell everyone, don't divorce unless you absolutely must. Think it through very, very hard. It just could be much better to just stay. And no...I don't see myself carrying a mortgage into retirement. I can't ever see myself being that financially foolish.

How about some gratitude people! We all have stories to tell, let's tell a new story a good story.

I am 47 year old single mother, got divorced at 42. Bought a house and ended up sleeping on the floor so I didnt have to borrow money to buy a bed. Now 5 years later I have a comfortable bed and I have 2 more years to go to have my semi detached home paid for. As a society I feel we use credit far to easily. Buy now pay later. I have very little sympathy for those who cry its so hard. If you are able bodied go out and get 2 jobs or 3 jobs whatever it takes. We try to keep up with the Jones' and funny thing is the Jones' are doing the same thing with the Smiths'. Once you are in the habit of saving instead of spending things seem to come easier. Its not divorce that is preventing individuals from being mortgage free, its the money management habits of these individuals.

I was not planning to have a mortgage when I retired, but my job was outsourced just as I turned 65. However, we live quite comfortably in our Mini-home. 3 bedrooms, 1 1/2 baths. Total cost of the mortgage, power bill, taxes, insurance, and maintenance is $690.00 a month. We did manage to pay off all our credit card debt a year ago. Just have one CC now for hotel reservations, etc., but that gets paid off every month. It is a huge relief, paying cash for purchases. I would recommend that you go through the hardship of cutting up the credit cards and paying cash. It saves us $300 a month in interest on those cursed cards..

It’s a pretty interesting tool. I will definitely be using it once I get the chance. Thanks for sharing!

It’s a pretty interesting tool. I will definitely be using it once I get the chance. Thanks for sharing!

I am a 57 year old been married for years retired 10 years ago because of health problems my husband retired 15 years ago for the same reason. I am so happy we can still live in our home YES we still have a mortage. If prices keep going up which is the big PROBLEM we may not able to stay in our home for much longer. Even if you don't have a mortage with the old age pension it is getting harder to maintain your home even if you have savings. Yes I think most people are using the equtity in their home to survie

I am 3 years from retirement. I haven't had a mortgage in 20 years until recently. I just purchased a house on the lake for over 1 million, with no downpayment and a mortgage rate of 1.5%. I used the equity in my other homes to avoid CMHC fees. My mortgage payments per month are huge, but I still end up with more disposable income than I can deal with. I used to just keep investing, looking for tax shelters, etc, but for what purpose? A poor ROI? I am much happier spending on real estate and owning my dream home. Even on my pension, I can afford my mortgage, and still have money to waste. I even support other family members who aren't as financially well off as I am.

So Al, having a mortgage at my age, you say that I should be ashamed of myself? HAHAHAHA! What else should I spend my money on?

I entered the world of mortgages at 65 and retired at 69. I carried both a Toronto mid town rental apartment while renovating a fixer upper outside a small village in the Haliburton Highlands. During that time I was doubled up on paying utilities, heat, etc for both residences, plus transportation costs. I have no pension from employment, just RRSP (modest), CPP and OAS plus maxing out my TFSA as an emergency fund.

All this after being a sandwich single with a disabled son and geriatric mother. Both have since passed on and my first financial break in decades. I live a wonderful lifestyle with a small income, space to breathe, a paid for car and some money in the bank.

I say "Freedom 75"! It can be done with careful planning, and not carrying credit card debt.

Lower expectations helps a lot, but the freedom to choose whatever fits is huge!!! I will run out of money by 80 and will then pull the equity out of my home (which won't be paid off).

I am living on less and better than if I had remained in the GTA.