Retiring with debt

Would you retire with debt (most likely a mortgage on your home)? I was really thinking of paying off debts before retiring to be prudent, but then I thought this would be silly as it would add a long time to your retirement compared to simply funding the interest and capital payments during retirement.

Interest rate risk could be reduced by taking long fix before retirement.

For those already retired, how did you handle this? For those with mortgage and looking to retire, how do you plan to deal with the mortgage?

I find it much preferable to retire with a mortgage (about 50% of the value of real estate) and the equivalent amount invested somewhere else, for three main reasons.

First it is generally possible to obtain higher return on your investment than the current mortgage interest rates; that is even more true if some of the return is tax-advantaged.

Second, I don’t want to become house-rich and cash-poor. Amortized real estate is very illiquid and cannot be used easily to pay bills or anything else. Invested capital can be partially sold if needed.

Third, when my heirs need to split my belongings, the mortgaged real estate will be a fraction the total wealth that can be attributed to a single heir. In contrast, a fully-amortized real estate object would be a larger fraction of total wealth, probably large enough that it cannot be given to a single heir; I see this as a complexity and possible risks of conflicts.