At his current rate of repayments, Paul Cronin will be 76 before he clears the mortgage on his Morrinsville property.

He pays about $325 a week and also has a student loan debt of about $20,000.

The prospect of going into retirement with debt is a worrying one. But he doesn't see that there are many options. "Can I do anything about it? Not with the social conscience and ethics I live by."

He could sell the house and move to a retirement village but that would mean there would no longer be space for his children and grandchildren to stay with him when they needed to.

"Even though my youngest is 19 to find rental accommodation that is affordable is extremely hard and my children - three of them are still going through the education system actually still need a back-up as rentals get sold or they cannot live with a rental often costing $180 per room."

Paul Cronin will still be paying off his mortgage in his 70s.

He cannot work while he waits for surgery, and even if that is successful, he faces a long period with no income. If possible, he will increase his payments to get rid of the loan more quickly.  But he's worried about what may crop up in the meantime. "When I bought this house 20 years ago it needed a new roof. It hasn't leaked yet but when I think about it I worry about it."

It's becoming increasingly common for people to enter retirement with mortgage debt.

Data from the Commission for Financial Capability shows that 33 per cent of those aged 55 to 64 had a mortgage, and 13 per cent of people aged 65 and older. Another 14 per cent of people aged over 64 live in rented accommodation. 

Credit Simple data has shown that Aucklanders aged 55 and over with a mortgage owe an average of nearly $400,000.

One single mother said she was on track to have a mortgage into her 80s.

John Bolton, founder of mortgage broking firm Squirrel, said 95 per cent of new buyers were now taking out loans they set up to repay over 30 years.

Loan Market adviser Bruce Patten said he saw a high percentage of clients aged over 55 with home loans – some were for their own homes and some for rental properties. He said it was something that banks were becoming increasingly cautious about. People applying for new loans had to explain how they would pay them off if the repayment schedule would take them past age 75.

"Most people when they take a loan out plan to have it cleared by 55 or 60 but their circumstances, bad business decisions, or a marriage split can make it more of a challenge."

Financial adviser Liz Koh said she saw clients who were struggling with debt and wondering what to do. "It's a terrible position to be in… people are extremely stressed, often they couldn't sleep at night and are under pressure to keep working."

Australian research measuring mental health on a scale of 0 to 100 showed mortgage difficulties reduced mental health scores for older men by about two points. For women, it was 3.7 points.

Marital breakdown, ill health and poor labour market engagement all adversely affected older female mortgagors' mental health scores more than men's.

Researchers said the impact of mortgage stress on older people was comparable to a long-term health condition.

Koh said some used reverse mortgages to pay off their home loans, which meant they did not have any ongoing repayments. But those products erode equity in a property and were a last resort option, she said.

Meanwhile, Deb, who did not want her identity revealed, said she was facing the prospect of paying off her mortgage until she was 81. "It's ludicrous… I worked my butt off for five years to reduce my mortgage then had to redraw it so my daughter could have corrective braces. Now I'm back where I started."

She was battling high blood pressure and stress-related dermatitis. She planned to rent a room to a student to help pay the mortgage once her children left home.

Back in Matamata, Cronin says it's possible he'll solve the issue by winning Lotto. The only problem is he'll have to buy a ticket first. "If I took a Lotto ticket for $6, you can get two bottles of milk for $6. I haven't had a Lotto ticket for a long time. You do dream about it occasionally."

WHAT CAN YOU DO?

Financial advisers offer this advice:

- Funnel all extra income into paying down your debt. The exception to this is your KiwiSaver account. Maintain contributions there at a level that your employer (if applicable) and the Government will match. This is usually 3 per cent of your income or $1042 a year, whichever is higher/

- Negotiate with your bank to get the best interest rate you can, or shift to a rival bank if it will offer a better deal.

- Downsize if you can. If you're still earning, you can then use the money you were spending on  bigger mortgage payments to invest or save in other assets.

- Your bank may offer a line of credit that you can make available for unexpected expenses.

- Ask for help from family or friends. You could sell your kids a share of the house.

- A reverse mortgage could be an option - this means you swap a loan you're paying repayments on to one without repayments. The drawback with this is that, because you're not paying off what you owe, it can increase quickly and erode the equity you have in your property.

- Get a boarder.

- Sell your house and rent, if the sale would give you sufficient income to do so comfortably and you could cope with the possibility of having to move again in future.