Why More Canadians Are Carrying Mortgage Debt into Retirement and How Marmot’s Mortgage Accelerator Benefit Can Help

Canadian homeowners are facing a reality check.

According to a new Royal LePage report, nearly 3 in 10 Canadians (29%) planning to retire within the next two years will still be carrying mortgage debt. This growing trend highlights a financial pressure point that many retirement plans aren’t built to handle.

That’s where innovative employee benefits like Marmot’s Mortgage Accelerator come in.

By accelerating mortgage payoff, this program can significantly mitigate the financial burden and stress associated with carrying debt into retirement. Let's explore why this benefit is a game-changer for employees facing the prospect of mortgage debt in retirement.

Canadians Face Rising Mortgage Debt in Retirement

Recent data from Royal LePage reveals a significant shift in retirement planning, the report sheds light on key trends:

• Affordability Challenges: The current housing market in Canada presents significant affordability issues, making it harder for retirees to pay off their mortgages.

• Extended Property Ownership: Boomers are delaying their exit from property ownership compared to previous generations due to affordability challenges.

• Later Home Buying Age: The age of first-time home buyers has increased, with 43% of first-time buyers being 35 years old or older.

The Risks of Retiring with Mortgage Debt

Carrying mortgage debt into retirement comes with several downsides:

• Financial Stress: The burden of mortgage payments creates significant financial stress, impacting quality of life during retirement.

• Reduced Savings: With retirement savings going towards mortgage payments, retirees will find it hard to achieve goals or unexpected expenses.

• Limited Financial Flexibility: Mortgage debt can limit retirees' financial flexibility and options.

A Game-Changing Way Forward: Marmot’s Mortgage Accelerator Benefit

The Mortgage Accelerator Benefit is an employer-sponsored benefit that redirects employer group saving contributions towards paying mortgage principal. Employee mortgages are paid faster, helping to save thousands in interest and shave years off their loans.

It is hard to adequately save for retirement while still paying for a mortgage towards the end of your career. The Marmot Benefits Mortgage Accelerator is a valuable employee benefit that addresses the unique challenges faced by today's employees contemplating retirement with a mortgage.