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Confidence To Save For Retirement Lacking

About four-in-10 respondents aren't confident in their ability to save for retirement and are relying on the value of their home to help fund their retirement, says a BMO Retirement Institute survey. It also found that one-third believe living comfortably in retirement is the most important financial goal, but many don't think they're doing enough to reach that dream. About 40 per cent say they're not confident they can save enough to fund their ideal retirement plans, while 29 per cent expect to have to delay retirement or work part-time due to a shortfall in savings. And 41 per cent consider the equity they are building in their homes as an alternative source of funding their post-work plans. However, BMO warns that using a home as a nest egg is a risky idea and that personal savings must play a role in retirement planning. Marlena Pospiech, retirement strategist at the BMO Retirement Institute, says "while it is true that, in the past, Canadians have enjoyed a stable housing market and increasing real estate values, there is no guarantee that this trend will continue. As a result, individuals shouldn't count exclusively on their homes to fund their retirement and should be focused on building up their personal retirement savings."

Courtesy of Benefits and Pensions Monitor website News Alerts

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