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

Some states look to fill a retirement savings gap
Lawmakers in 17 states are considering simple, low-cost ways that would enable workers to direct a portion of their pay to a retirement account for their golden years, according to The New York Times. The plans, which could be options to the new myRA workplace savings mechanism, would be designed to scrap fees, minimum contributions, and other barriers to retirement savings. While some experts oppose the proposals, offering retirement saving options is necessary given long-term trends, according to advocates cited in the article.  --New York Times

Using immediate annuities to guarantee retirement income
Although immediate annuities saw a surge in sales in the first quarter, with no slowdown sight, such financial products account for less than 10% of total annuity sales, according to an article in The Wall Street Journal citing numbers from research group Limra. Other, high-fee types of annuities are being sold more aggressively; plus, immediate annuities can be difficult to understand for many clients, which may explain why these annuities are less popular. Those who consider buying immediate annuities need to check monthly payouts, phase in their purchase, and ensure security of the payments.--Wall Street Journal

Too late to plan retirement? Never!
Planning for retirement is never too late even for clients who are in pre-retirement years as people are likely to have a longer life span, according to Forbes. Clients who are in their 50s need to max out the allowed contributions to their 401(k) plans and increase their Roth IRA savings, while those in their 60s have to curb their investment risk and defer Social Security while they can. Clients in their 70s need to shift to low-risk savings accounts for emergencies, downsize their lifestyle, and hold an investment portfolio to ensure they won't outlive their nest eggs.  --Forbes

Retirement: 2 different views on the 4% rule
Given the country's worst-case scenario, author and financial planner William Bengen's 4% withdrawal rule from retirement savings could be a safe withdrawal rate for current retirees, according to MarketWatch. Another view on the withdrawal rate includes retirement date market valuations in the analysis to make the withdrawals sustainable, putting the desired withdrawal rate at 4.2%.   --MarketWatch

Tips on optimizing guaranteed income sources in retirement
Clients who are planning for retirement have various ways to max out their Social Security benefits, says Christine Fahlund of T. Rowe Price Group. In this article, Fahlund also discusses in detail longevity, long-term care insurance, and other factors that clients need to consider when developing a retirement plan.   --Morningstar

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