Retiring with debt? Experts explain downsizing, using super for your mortgage, and pension eligibility

Getty Images by Kathleen Walsh, University of Technology Sydney and Jemma Briscoe, University of Technology Sydney This article is part of The Conversation’s “Retirement” series where experts examine issues including how much money we need to retire, retiring with debt, the psychological impact of retiring and the benefits of getting financial advice. About 36% of homeowners still have a mortgage when they retire, up from 23% a decade ago. This increase in mortgage debt is due to soaring property prices, changes in retirement ages and easy access to drawdown equity loans (where you use your home as security to get a loan, which can be used to fund travel, medical costs and other expenses). So, what are the options for homeowners who carry debt into retirement? Some retirees take out loans to fund travel, medical costs and other expenses. Andrea Piacquadio/Pexels Option 1: keeping the home and the debt If you keep the family home in retirement, you get to own a property and can still receive the age pension. For example: Jackie has a home worth A$2 million with a $200,000 mortgage. She also has $800,000 in superannuation. She is 67 but is not eligible for the age pension...