Elderly Fund: Russians will close every fifth mortgage in retirement
Banks are increasingly issuing mortgages, which borrowers will close after retirement, follows from the data of the Central Bank, which was studied by Izvestia. By the end of 2025, almost every fifth new loan was issued with a planned repayment at the age of 70-75, which is significantly higher than the current retirement age. As a result, borrowers will either have to close the loan ahead of schedule, sell their homes, or work for a long time after retirement. Banks expect that most of these loans will be repaid ahead of schedule. Why this rate may not play out and what borrowers should do to insure themselves is described in the Izvestia article.
How much has the share of mortgages with repayment increased in old age
The share of borrowers with planned mortgage repayment aged 70-75 years in the total volume of loans in the second half of 2025 was 19% compared to 17% in the first half of the year, according to data from the Bank of Russia. During the year, banks issued 966,000 mortgage loans, of which 661,000 were issued in the second half of the year. Thus, about 178 thousand borrowers who received a mortgage last year can close it at the age when they will be over 70.
At the same time, in general, the share of borrowers who will pay off a housing loan after the age of 60 is even higher and now accounts for about 65% of total loans. This is due to the fact that in recent years borrowers have been actively applying for mortgages for 25-30 years: in 2025, more than half of housing loans accounted for such periods.
At the same time, the average term of mortgage loans is gradually decreasing, said Marina Zabotina, Director of the Mortgage Business Department at PSB. According to her, this was influenced by lower rates on market programs and an increase in the share of basic mortgages in the bank's portfolio.
Earlier, Izvestia estimated that it would be unprofitable to take out a mortgage for the maximum term at a market rate of 17-18% per annum. Reducing the loan period from 30 to 25 years reduces overpayments by almost 20%, while the monthly payment increases by less than 1%.
The main reason for the long terms is preferential mortgage programs, said Vitaly Kostyukevich, Director of Absolut Bank's Retail Products department. With a low interest rate, extending the term can significantly reduce the monthly payment, so borrowers do not always seek to close such loans ahead of schedule.
The main risk of such a situation is associated with a possible decrease in income after the borrower's retirement, the press service of the Central Bank noted. At the same time, the monthly mortgage payment will remain the same, which may complicate loan servicing.
At the same time, banks set their own age limits for borrowers. In PSB and Absolut Bank, the maximum age of the borrower at the end of the loan should not exceed 70 years, and in Novik Bank — 65 years.
The Central Bank has no plans to limit the issuance of mortgages with a maximum maturity in old age, the regulator's press service said. Low down payments and high debt burden remain the main risk factors.
What are the risks of a mortgage in retirement?
The loss of the usual level of earnings after completion of employment can create difficulties with loan servicing, since pension payments in Russia are significantly lower than salaries, explained Natalia Bogomolova, director of NRA ratings of financial institutions.
Currently, the average pension in Russia is about 25 thousand rubles, while the average salary is about 100 thousand rubles. Thus, pension payments replace about a quarter of the previous income.
In the future, the situation may become further complicated due to demographic changes: according to Rosstat's forecast, by 2046 the population may decrease to 138.8 million people, and the proportion of citizens over working age may increase from 24.5% in 2023 to 26.9% in 2045. This will increase the burden on the pension system, which depends on contributions from the working population.
Savings in non-governmental pension funds can be one of the ways to increase future income levels. However, for borrowers who pay off a mortgage for 25-30 years, reducing the debt burden is often a higher priority.
"Without a salary, spouse's income, rent, or savings, the debt burden due to retirement can grow two to three times," said Vladimir Chernov, analyst at Freedom Global.
When issuing loans with a maturity of 70-75 years, banks do not take into account future pension income as the main source of payments, so the borrower may face problems repaying the loan, Natalia Bogomolova said. In some cases, the only solution may be to sell the apartment to cover the debt. In addition, you can either continue to work after retirement age, or close the debt ahead of schedule.
Why is it important to close a mortgage early?
The main task of borrowers with a long—term loan is not to rely only on a future pension and to plan in advance to reduce the debt burden. At the same time, banks understand that most customers will not pay their mortgages exclusively on schedule, said Yuri Belikov, Managing director of the Expert RA rating agency.
"Paying two or three prices for an apartment, the cost of which is already too high, is clearly not what borrowers plan to do," the expert noted.
However, the creditworthiness of Russians is now high, so the pace of early repayments is slowing down, and the risks are increasing, said Yuri Belikov.
The Central Bank believes that when issuing loans with a repayment period of 70-75 years, banks probably expect a faster mortgage closure. In fact, such loans are usually repaid in about 9-10 years.
However, it is naive to count on mandatory early repayment, Vladimir Chernov believes. Currently, a significant part of mortgages are issued at low preferential rates, so it is sometimes more profitable for borrowers to keep free funds on deposits than to send them for early loan closure. Even reducing the term from 30 to 20 years leaves payments until 60-65 years, when incomes may already begin to decline.
Therefore, borrowers who plan to pay off their mortgage after retirement should set a goal in advance to close the loan at least five to ten years before the end of their employment, concluded Vladimir Chernov. It is important to have a financial cushion for at least six monthly payments, to insure life and disability, and to direct premiums, tax deductions, and a portion of income growth to reduce debt.
In case of early repayment, the borrower may choose to reduce the payment or loan term. If the financial burden remains comfortable, it is more profitable to reduce the deadline: in this case, the payment is saved, but the final overpayment is reduced.
Also, borrowers should not rely solely on retirement income, Natalia Bogomolova concluded. It is more profitable to repay the loan as quickly as possible during the most expensive period, and if the key rate decreases, consider refinancing the remaining debt at a lower rate.
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