Becoming mortgage-free by the traditional retirement age of 65 is becoming more a hope than reality for many Kiwis.
Research findings the Bank of New Zealand issued yesterday shows almost one in three home-owners will be older than 65 before they shake off their mortgages.
That compares with 73 per cent of younger mortgage holders who expect to be free of any such encumbrance by 65.
An online survey by Colmar Brunton of 1002 people aged over 18 found three out of five people expect to be working past that age.
Although almost half expect to be doing so by choice, to stay active by working at least part-time, BNZ retail and marketing director Craig Herbison says it is alarming how many fear they will have to keep toiling to maintain their desired living standards.
The survey has found that 15 per cent expect to have to continue working to keep paying off mortgages, and 13 per cent to meet other financial commitments.
Mr Herbison said it was great that many Kiwis wanted to work past 65 to keep active "but we want to make sure people have the retirement they want, not the one they are forced to have".
The research found people's expectations change.
"We're very optimistic in our younger years, but we're forced to shift the goal posts as we get older," Mr Herbison said.
The bank urges people to make the most of low interest rates by making extra mortgage repayments to knock a few years off the terms of their loans.
"There hasn't been a better chance since the 1960s to get ahead and pay off your home loan faster," Mr Herbison said.
He was concerned at the large number of people - 63 per cent - whom the research revealed did not understand how much impact paying an extra $30 a week had on the length of their home loans.
At current interest rates, the bank says that could knock five years off them. NZME