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

Pension agency: 1.5 million plans underfunded
About 1.5 million workers may receive lower retirement benefits as their retirement plans are seriously underfunded, according to the Pension Benefit Guaranty Corp. Employees covered by multi-employer plans are at the greatest risk, while single-employer pension plans for about 30 million participants are financially stable. Despite the poor financial standing of underfunded multi-employer plans, the outlook has improved from last year, the agency added.   -- CNBC

Retirees may be ignoring their biggest assets
Investors need to consider the value and risk of their pension, Social Security, and other assets before deciding on the percentage of their assets in their portfolio that will go to stocks and bonds, according to MarketWatch. Social Security, pension benefits, and other assets act much like bonds, as these are guaranteed sources of retirement income. As such, clients may increase the value of their investments by holding more bonds, but they may adjust their portfolios from being too heavy on bonds by selling some of these to get more stocks.   -- MarketWatch

The simple formula that can help you achieve financial independence
Clients' ability to build sufficient nest eggs does not depend on their income or investments as much as their spending and expected spending in retirement, according to CNN Money. They can determine their desired retirement asset level by subtracting their expected monthly Social Security and pension benefits from their expected monthly spending, and then multiplying that difference by 200. Clients may reduce their expenses if they don't get close to their targeted asset level, or they can boost their net worth by raising their deferral into their 401(k) or another pre-tax retirement plan.   --CNN Money

The improving economic situation of those over 65 years old
The number of Americans who are 65 years old and older increased 12 times from 1900 to 2010, with the percentage of this age group in the total population expected to increase, as well, according to a report from the U.S. Census Bureau and the National Institute on Aging. The poverty rate of older people was lower compared with other age groups in 2010, dropping to 15.3% in 1975 from 35.2% in 1959. More senior people than younger generations are financially secure, as the percentage of senior people who were employed increased to 16.2% in 2010 from 14.5% in 2005, the report says.   --Wall Street Journal

Fleeing Illinois for Tennessee in retirement
Tennessee could be an ideal state for retirees because it offers a relatively low cost of living, according to Forbes. This article features the move made by a retiree couple from Illinois to Tennessee and weighs the factors that come into play in such a move. Retiring couples should consider estate taxes, repair costs and their children's families who will pay them a visit. They may also need to check the area as well as meet the neighbors before buying a house in their desired location, the article says.   -- Forbes

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