The purpose of this study was to evaluate the relationship between holding mortgage debt into retirement and financial satisfaction. Using data from the 2012 National Financial Capability Survey, this study explored the association between holding a mortgage in retirement and financial satisfaction through the use of a two-block hierarchical regression model. The first model of socio-demographics, financial constraints, and financial characteristics revealed a negative relationship between mortgage holders and financial satisfaction. The second model added measures of financial capability and financial beliefs, which revealed strong relationships between comfort with debt, knowledge about mortgages, subjective financial knowledge, and risk tolerance with financial satisfaction. After the addition of financial capability and belief measures, no relationship was found between holding a mortgage and financial satisfaction. Results suggest practitioners should explore their clients’ beliefs about debt, as opposed to just the objective costs and benefits, when evaluating whether to hold a mortgage in retirement.

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