Our daily roundup of retirement news your clients may be thinking about.
The skyrocketing costs of prescription drugs could worsen Medicare's financial woes, according to this article on Motley Fool. Spending on prescription drugs under Medicare Part D’s catastrophic drug coverage rose 85% over the past three years, according to the Centers for Medicare and Medicaid Services. Catastrophic prescription coverage jumped to $51.3 billion in 2015 from $27.7 billion in 2013. If the figures continue to rise, Medicare may be forced to pass on the costs to patients who are mostly retirees. –Motley Fool
When 401(k) participants die, their spouses usually inherit the assets in the plan, according to this article on Kiplinger. However, participants are advised to follow the plan rules for waiving spousal rights if they intend to name a non-spouse as a beneficiary, as the law may supersede their wish. The rules may require that their spouse sign a waiver and have it notarized if they wish to leave the money to children from a previous marriage or a charity. –Kiplinger
Many retirees are unaware that refinancing is an option for them if they can no longer afford their existing home mortgage, according to this article on Nasdaq. Retirees with limited financial resources can apply for refinancing even if their income mostly comes from Social Security and retirement accounts. –Nasdaq
While many retirees regret that they failed to save enough for their golden years, others wish they had enjoyed life while they were still young as their deteriorating health keeps them from pursuing the things they love, according to this article on Washington Post. Many seniors also regret not starting their retirement saving earlier, not retiring sooner, and not seeking guidance from a financial planner. Some retirees said if they could turn back time, they would make sure their spouses would benefit from their retirement benefit-claiming decisions, and they would consider the impact of taxes and other factors when tapping retirement accounts and making investing decisions. –Washington Post
A survey shows that more employers are willing to help their employees prepare for retirement, with 39% of these companies looking at their workers’ retirement readiness as a risk. “We are beginning to see governance committees adopt a more holistic view to DC oversight,” says an expert. “They continue to review investments and plan fees, and they are also considering retirement readiness and how the program influences plan participants’ behavior to improve outcomes for them.” –Forbes
