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A MORTGAGE IN RETIREMENT?

Dr Matthews says the Massey survey shows most people today are

retiring without a mortgage, but she expects that trend to change,

because fewer people in recent generations own their own homes.

“The currently retired cohort are baby boomers and the generation

before that. They have a very high level of home ownership, and most

of those have been able to pay their home loan off.

“This is one of the significant changes we’re expecting. House prices

have increased, and people have continued to borrow.”

Dr Matthews says people will still be in their own homes come

retirement, but more likely will have a mortgage, which will add to

their retirement costs.

DOWNSIZE TO FREE UP

CAPITAL

Many people tend to move into a

smaller property when they’re

retiring, says Bindi Norwell, chief

executive of the Real Estate Institute

of New Zealand. It’s a great chance

to declutter and simplify lifestyles.

“There comes a point where people say, “Actually, we’ve got far too

much space, it’s getting hard to maintain it, and we’re paying for

things we don’t need.”

“Typically, it’s a family home they’re selling, maybe around school

zones,” Norwell says.