Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. For many Americans, retirement was once expected to come with the major financial milestone of owning a home free and clear. New research from Visa (NYSE:V) shows a rising number of older Americans are still carrying mortgage debt well into retirement.
Some 41% of homeowners between ages 65 and 79 still have mortgage debt as of 2022, according to new research from Visa. Even among homeowners age 80 and older, 31% are still making mortgage payments, up from just 3% in 1989. Jeff Bezos Is Putting $100 Billion Behind AI Robotics — This Company Is Already Deploying Robots In Restaurant Kitchens.
Deloitte's #1 Fastest-Growing Software Company Lets Users Earn Money Just by Scrolling — Investors Can Still Get In at $0.52/Share Visa, which examined how much wealth baby boomers are expected to pass on over the next two decades, found that boomers hold an estimated $93 trillion in assets. Far less will ultimately reach their heirs once debt, retirement spending, taxes and charitable giving are taken into account. Visa says mortgage debt is only one piece of the puzzle.
Baby boomers collectively carry more than $4 trillion in debt, including credit cards, auto loans, personal loans and borrowing tied to investment accounts. Many older homeowners also spend a large share of their income just to keep up with housing costs. That can leave less money available for retirement and shrink the amount families eventually pass on to the next generation.
Many people expecting a huge wave of inheritance may be disappointed, Visa said. While baby boomers hold an estimated $93 trillion in assets, Visa estimates only about $36 trillion will ultimately be passed on to Gen X and millennials after accounting for debt, retirement spending, taxes and charitable giving. Trending: AI Needs More Data Centers.
Learn How BluSky AI Is Building Modular Infrastructure To Meet Demand. It's also a reminder that owning real estate doesn't always mean living mortgage-free. For anyone who likes the long-term potential of real estate but doesn't want to buy, finance and manage an entire property, there are other options.
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