Updated
Updated · Yahoo Canada Finance · Aug 2
29% of Near-Retiree Canadians Expect Mortgage Debt to Outlast Work, Pushing Costs to Children
Updated
Updated · Yahoo Canada Finance · Aug 2

29% of Near-Retiree Canadians Expect Mortgage Debt to Outlast Work, Pushing Costs to Children

3 articles · Updated · Yahoo Canada Finance · Aug 2

Summary

  • Nearly 3 in 10 Canadians planning to retire in 2025 or 2026 expect to keep paying a mortgage after leaving work, underscoring why more boomer parents are relying on their children for support.
  • Debt is rising even before retirement: mortgage balances for Canadians aged 55 to 64 climbed about 6% in the past year, while average non-mortgage debt stands at C$22,377.
  • Retirement income often cannot absorb those obligations, with new CPP beneficiaries receiving an average C$877.01 a month and maximum OAS for ages 65 to 74 at C$751.97.
  • That squeeze is sharper because 52% of Canadian workers lack a workplace pension, leaving many households exposed to home repairs, health costs and growing care needs.
  • The pattern points to a broader reversal of the usual wealth-transfer model, with money increasingly flowing from adult children to aging parents instead of the other way around.

Insights

With Canadian boomers carrying record debt into retirement, will the burden of supporting them financially bankrupt the younger generation?
As senior insolvencies hit 2009 levels, is the Canadian dream of a debt-free retirement officially dead for those lacking workplace pensions?
If retirees are increasingly passing down debt instead of wealth, how will this unprecedented reverse wealth transfer reshape the economic future?