Housing market correction would damage retirement funds

Baby boomers could leave themselves short of retirement funds if there’s a housing market correction.

That’s the warning from Dean Connor, CEO of Sun Life Financial, who says that some boomers believe they have made smart investments in real estate when really they’ve been lucky.

Connor warns that many are over exposed to a housing market dip and rising interest rates as they have high levels of debt which may not even be covered by selling their home if the worst was to happen.

A recent survey by Sun Life revealed that 24 per cent were intending to use their home to fund their retirement, but Connor advises that we should aim to be debt free by retirement.

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