Those approaching retirement have traditionally tended to consolidate their retirement funds and eliminate debt, but recent statistics show that baby boomers are still borrowing.

Financial advice writer Preet Banerjee explained what the trouble is.

"This is going to be a real problem for people who have stretched themselves to the limit," he said.

"Unfortunate people who have done that seem to be disproportionately higher people in the boomer category."

The problem comes from boomers often having paid-for large homes with huge equity, which allows them to borrow against that equity for other expensive purchases, believing they can down-size their homes and pay off the debt.

Banerjee said this could result in a glut of large, expensive homes on the market in a short period of time, pushing those prices way down.

This could leave the boomers holding a lot more debt than they expected.

Edited by News Talk Radio's Jared Knoll.