More Canadians are carrying mortgage debt into retirement as rising housing costs, delayed homeownership and longer life expectancy reshape traditional financial timelines, according to a senior executive at RBC Insurance.
Sarah Willcock, Senior Director at RBC Insurance, said nearly one in three Canadians who retired in 2025 or plan to retire in 2026 will still be servicing a mortgage, reflecting a significant shift from previous generations.
Willcock attributed the trend in part to Canadians entering the housing market later in life. She noted that the share of first-time homebuyers aged 35 and older has increased significantly in recent years, with the median age in Ontario now reaching 40. As a result, standard mortgage terms of 25 to 30 years are increasingly extending into retirement.
She also pointed to rising living costs as a contributing factor, alongside growing financial support provided by older Canadians to help children and grandchildren enter the housing market. These pressures can erode savings and affect the ability to pay down debt before retirement.
Longer life expectancy is another key driver, Willcock said, as Canadians must now plan for retirement periods that can span decades, increasing the likelihood of refinancing and carrying debt later in life.
The shift is also reflected in changing retirement patterns. Willcock said retirement is increasingly viewed as a second phase of life, with some retirees continuing to work, maintaining larger homes and prioritizing lifestyle flexibility over downsizing.
To manage these challenges, she emphasized the importance of early financial planning, including assessing income replacement needs and considering tools such as life insurance, critical illness coverage, disability insurance and annuities.
Willcock added that failing to plan adequately could have implications for estate outcomes, particularly for those hoping to pass on assets such as family homes, cottages or businesses.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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