Our daily roundup of retirement news your clients may be thinking about.
Gen X clients are advised to open a retirement account and opt for an automatic deposit in funding the account as part of their financial goals, according to Forbes. 401(k) participants should take advantage of their employer's match contribution, while those who have no access to an employer-sponsored plan have the option to open a traditional or Roth IRA. Self-employed workers can also start building a nest egg through a Solo 401(k) plan. Other suggestions include: paying down debt as soon as possible; establishing a personal spending budget; creating an emergency fund and setting up automatic deposits to fund it; and establishing a reward system for an achieved goals.
What will the retirement age be in 2050?
The retirement age is likely to be raised by several years by 2050 as the population ages and pension trust funds continue to shrink, according to experts. The decision to retire is partly influenced by the retirement age set by the government, but increased longevity will prompt people to continue working past the age they qualify for government benefits, according to economists and public-health experts. --Fortune
A soon-to-be retiree's guide to a crazy market
Investors should avoid selling stocks when the markets tumble years before their retirement, according to CNNMoney. Instead, they are advised to tap other income sources, such as Social Security, pension or annuity. "Your anxiety level will go way down if you know you can pay for the groceries whether stocks go up or down," says Dan Keady, director of financial planning at TIAA-CREF. --CNNMoney
More evidence that, yes, the retirement crisis is real
The retirement crisis that many experts warn about is real as the replacement rate (or the income that people receive after retirement as compared with their pre-retirement earnings) is on a decline, writes Philip Moeller, an expert on retirement, aging, and health. The drop can be attributed to the increase in Social Security retirement, Moeller writes. "Raising the retirement age, without a corresponding increase in benefits, causes benefits to drop for people who claim them at earlier ages, which is what most people do." --Money
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