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

Workers are retiring with decent savings, but are reluctant to spend their money
A study by Ameriprise Financial has found that retirees have median savings of $839,000, but many of them are unwilling to spend away their nest egg, according to this article on Motley Fool. That's because they are afraid of outliving their nest egg. To ensure that retirees tap their savings without depleting their funds, may start with 4% withdrawal rule as the benchmark and adjust the rate according to their personal circumstances.

Bloomberg News

8 steps to building a better nest egg for your retirement years
A study by a Morningstar expert has found that clients can boost their retirement prospects significantly by delaying retirement, raising their 401(k) contributions and reducing their expectations for the golden years, according to this article on USA Today. “If Americans delayed retirement until at least age 67 and contributed at least 6 percent (to their retirement accounts) ... that would boost the percent of American households having what they need from 25.6 percent to 71.2 percent," writes the researcher.

Social Security disability costs may be lower than projected
Contrary to the assumptions in the Social Security Board of Trustees' report, disability rates have been on a decline, writes Alicia H. Munnell, director of the Center for Retirement Research at Boston College, on MarketWatch. "To the extent that the Trustees’ projections miss the mark, they have probably overestimated future disability rolls and thereby the future cost of the Social Security program."

27 cheapest places where you'll really want to retire
This article on Kiplinger identifies 27 of the 50 top retirement destinations with the below-average cost of living. Living expenses are crucial in retirement planning. A survey by Merrill Lynch and Age Wave has found that 67% of Americans intend to relocate to a less expensive place to enhance their financial prospects in retirement.

Think twice before taking retroactive Social Security benefits as a lump sum
Seniors who file for Social Security benefits after reaching their full retirement age have the option of collecting a retroactive benefit, according to this article on Forbes. This is a lump sum payment of their benefits for the months between their FRA and the time of filing. However, retirees will be better off not taking the lump sum payment of their retroactive benefits, as this option will push back the filing date and subsequently result in permanent lower benefits.

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