Is there really a retirement-savings crisis?

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Is there really a retirement-savings crisis?
Two experts weigh in on whether there is a looming retirement crisis in the U.S., and provide opposite views on the issue in this article in the Wall Street Journal. For Alicia Munnell of Boston College’s Center for Retirement Research, Americans are facing a retirement-savings crisis, as about 50% of today's households are unlikely to support their preretirement lifestyle after they retire. However, Andrew Biggs of the American Enterprise Institute believes otherwise, saying that while some studies found that most Americans have not saved enough for retirement, "others show fewer Americans falling short, and smaller shortfalls."
Your guide to working while collecting Social Security
Seniors who opt to collect Social Security while working before reaching their full retirement age can expect a reduction in their benefits, according to this article on Motley Fool. They could also owe taxes on up to 85% of their retirement benefit depending on their combined income, which is their total earnings plus 50% of the benefit.

Can you get true asset allocation in a single fund?
Investors may be better off having a single-asset allocation plan that investing in individual investment options to form a portfolio, according to this article on Yahoo Finance. Based on a 2014 study, retirement plan participants who invested in a single John Hancock asset allocation portfolio received 1.06% more in returns compared with those who opted to build their own portfolio out of individual funds. These single-asset allocation portfolio funds are introduced as target-date funds in a 401(k) plan.

How retirees can use their home's wealth as an emergency fund
Retirees have the option to tap their home equity through the standby reverse mortgage to create a new income stream in retirement, according to this article on Kiplinger. This option is becoming popular among retirees, as it helps prolong the life of a senior's portfolio. The standby reverse mortgage strategy won't result in additional taxes and can boost retirees' income without increasing the taxable portion of their Social Security benefits as well as triggering Medicare premium surcharges.

The best way to keep your retirement on track - even when the market stinks
A study has found that many people are overly confident about their retirement prospects, but market trends indicate that their portfolio may not generate enough returns to secure their golden years, according to this article on Money. Increasing stock allocation in the portfolio could result in bigger returns, but this move could also mean greater investment risk. A better strategy is to invest in low-expense index funds and exchange-traded funds, as study findings show that these investment options perform better than high-cost funds.

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