Traditional expectations of retirement—downsizing to a smaller home, living mortgage-free, and enjoying a simpler life—are shifting for many Canadians, according to a recent survey. Nearly half of those planning to retire in the next two years have no plans to downsize, revealing a generational divide over what homeownership looks like in retirement. While 46 per cent still plan to move into smaller properties, many are opting to stay put due to economic factors, lifestyle preferences, and emotional ties to their current homes.

For those who do choose to downsize, condos are the most popular option, followed by adult lifestyle communities and smaller detached homes. However, lifestyle features tend to influence decisions more than property type. Retirees prioritize single-level layouts, proximity to healthcare and amenities, being close to family and friends, and conveniences like maintenance services and covered parking.

One of the most notable shifts is the increasing number of retirees carrying mortgage debt into retirement. By 2026, 29 per cent of Canadians retiring will still have mortgage payments—more than double the 14 per cent reported in 2016. This change reflects broader housing trends, such as high real estate prices and delayed market entry. Many retirees are choosing to maintain mortgage payments if it allows them to remain in a beloved home or help adult children enter the housing market.

The survey also points to delayed life milestones. More first-time homebuyers are over the age of 35, and the average retirement age has climbed to 65.3 in 2024, up from 64.3 in 2020. Today’s retirees are adapting to new financial realities and lifestyle goals, showing greater flexibility than previous generations when it comes to housing and debt in their later years.