Our daily roundup of retirement news your clients may be thinking about.
Christie: Increase retirement age by 2 years over next 25 years
Republican presidential contender Chris Christie said that the retirement age should be raised by two years over the next 25 years to address Social Security's financial woes, according to this article on Bloomberg. The government needs to change the rules for Social Security and other entitlement programs as these programs are "mortgaging away our children's future," Christie says. --Bloomberg
7 demands retirees should place on their money
As retirees depend on their retirement savings for income, they should ensure their money grows, is managed by a trusted custodian and invested in a tax-efficient manner, according to this article on MarketWatch. Retirees also should ensure their retirement income will continue until death and they have control over their assets. Having an emergency fund is a smart move, with a cost-efficient estate planning in place for their loved ones in the event they pass away. --MarketWatch
Are your aging parents less financially savvy than a high school dropout?
A study shows that accredited investors' financial literacy deteriorates with age and their ability to make sound financial decisions is poorer even than high school dropouts, according to this article on Forbes. Non-accredited investors' wealth usually reaches its peak when they are about 65, while accredited investors see their wealth remain plateau when they hit 80, the study finds. --Forbes
3 ways to dodge big Medicare premium hikes next year
Based on Medicare's annual trustees report, many beneficiaries can expect their Part B premium to see step increases next year, according to this article on Time Money. But they can avoid any increase in their premiums if they lower their taxable income and defer their enrollment into the program. They can also avoid the increase if they pay the premium through Social Security. --Time Money
How to save for retirement at your first job
Clients who get employed for the first time are advised to start saving for retirement, and to do that they need to set up automatic contributions to their 401(k) plans and take advantage of their employer's match contributions, according to this article in U.S. News & World Report. They are also advised to seek a tax break for their 401(k) contributions, consider holding an IRA and own a Roth account to minimize the tax burden. Investing in low-cost fund and setting aside an emergency fund are also moves that will help first-time workers to build their nest egg. --Yahoo Finance