Our daily roundup of retirement news your clients may be thinking about.
People who have prepared well for their retirement may still run out of funds in their golden years, if they fail to create a budget or they underestimate the funds they need, according to this article on Kiplinger. Retirees with sizeable savings may also outlive their nest egg, as they may have a longer life span, long-term care becomes more expensive, or the sequence of returns takes a toll on their retirement funds. Clients can ensure that their nest egg will last by creating a very good budget that accounts for their desired lifestyle, inflation, market volatility, increased longevity and long-term care.
Two recent surveys have found that many Americans are concerned about their retirement prospects, according to this article on Washington Post. Based on a poll by Ramsey Solutions, 56% of people are losing sleep over their golden years. In a survey by Schwab Retirement Plan Services, saving enough for retirement is a top financial stress for 40% of the respondents, which include millennials. “With so many competing obligations and priorities, it’s natural for people to worry about whether they’re saving enough for retirement,” says an expert with Schwab. “Roughly nine of 10 respondents told us they are relying mostly on themselves to finance retirement.”
Seniors leave free money on the table when they make poor decisions regarding Social Security benefits, according to this article on Aol.com. Many seniors also lose money if they don’t plan on how to tap into their retirement savings and if they adopt an overly conservative approach to investing. Retirement plans allow catch-up contributions for participants aged 50 and older, but many of them do not make the most of this opportunity.
A couple has saved at least $1 million in four years and is on track to retire at the age of 43, according to this article on CNBC. They determined the exact savings they need to secure a comfortable retirement, reduced their spending, and downsized to free up more money to add to their nest egg. The couple also boost their income by working on the side and making smart investments. "I learned that you don't need a lot of money. My quality of life has not changed since we became laser-focused on cutting out our expenses. I don't need the cable TV. ... I don't need a super-expensive phone plan," the wife says.
The Social Security Administration has removed a measure on its website that requires people to enter a security code sent to their cellphones so they can access their personal accounts, according to this article on Money. “Our aggressive implementation inconvenienced or restricted access to some of our account holders,” says a spokeswoman for the agency. “We are listening to the public’s concerns and are responding by temporarily rolling back this mandate.”
