Our daily roundup of retirement news your clients may be thinking about.

This new approach to Social Security's full retirement age would eliminate 83% of its cash shortfall
A bipartisan bill last year called for an increase in full retirement age two months every year between 2022 and 2034 and indexing normal retirement age to life expectancy, according to this article on Motley Fool. Based on estimates from Social Security's Office of the Chief Actuary, raising the FRA could fix 83% of Social Security's budgetary woes. Under the bill, Social Security would also resolve 2.21% of its long-term actuarial deficit, the report suggests.

Bloomberg News

When people mistakenly ‘disinherit’ their loved ones
Sometimes a client's wealth goes to the wrong people after he dies because he failed to change his beneficiaries on his 401(k) plan and other investment accounts, writes an investment advisor on CNBC. This also happens when he gave incorrect beneficiary information or he failed to provide a list of beneficiaries as per stirpes, the expert writes. "An estate of a decedent is distributed per stirpes if each branch of the family is to receive an equal share of an estate."

No end to the daily grind? Older Americans plan to work in retirement
A recent survey by Ipsos/USA Today has found that a third of respondents aged 45 to 65 intend to work part time in retirement, with 4% saying they want to have a full-time job, according to this article on USA Today. The Great Recession is to blame for people delaying their retirement. “A lot of people got off track with their savings over the course of the recession and they’re still making up for that,” says an expert.

Ask Larry: How will my wife's widow's benefit be calculated?
A retiree who collects a government pension and Social Security benefit is entitled to a widow's benefit on her husband's record, according to this article on Forbes. Her widow's benefit will be subject only to the Government Pension Offset. The Windfall Elimination Provision, which reduced her own retirement benefit, will not apply and reduce her widow's benefit. She is advised to file for this benefit when she reaches her full retirement age to maximize the benefit.

5 facts about equity-indexed annuities
Investors who want to have guaranteed income in retirement and get investment returns should consider equity-indexed annuities, according to this article on Yahoo Finance. "An index annuity is absolutely appealing in this environment, because we are at an all-time high," says a financial advisor. "Many folks are therefore looking for a place they can have their money protected and have it growing at the same time. An index annuity does that for them."

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