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

Costs hurt more than clients realize in down market

Clients stand to lose a lot from mutual fund costs and management fees, just like inflation, and the impact could be worse when markets are down, according to MarketWatch. The case for retirees will be much more difficult since they need to tap their investments for income in a down market. They will be forced to do reverse dollar-cost averaging and lose about 1% of their return, which can be significant to them and add to their losses from investment costs and inflation. - MarketWatch

How to get big company 401(k) benefits at small firms

Although bigger employers offer better 401(k) plans than their smaller counterparts, workers in small companies can prompt their employers to improve their plans by striving to minimize the costs, according to Forbes. One way to bring down costs is to offer low-cost mutual funds or ETFs. While target-date funds can be desirable, employees should be sure they are low-cost and fully disclose the amount of risk they are taking.  Also, their employers should change vendors and choose one that offers quality, as well as seek the best deal with the help of an independent fiduciary consultant. - Forbes

Why catch-up contributions put retirees way ahead

401(k) participants aged 50 and above can boost their retirement income by making the most of their plan's catch-up contributions, according to Money Magazine. Catch-up contributions can go as high as $6,000 and will be non-taxable, and could mean an extra $1,000 in monthly retirement income, based on calculations by Fidelity Investments. “It’s a game changer,” says Fidelity's Meghan Murphy. - Money

A rising retirement age disproportionately hurts the poor

Policies with the potential of increasing the current retirement age could put poor workers at a disadvantage since they have a shorter lifespan compared with the wealthy, according to a study by the Center for Retirement Research of Boston College. "Over the last 30 years, just as there have been increases in income inequality, there have been increases in mortality inequality," says Geoffrey Sanzenbacher, one of the researchers. "People who are poor have always lived less long than people who are richer, and that’s actually gotten worse over the last three decades." - Bloomberg

4 building blocks of a secure retirement

Clients who want to secure their retirement are advised to have a plan that will ensure their retirement income will be enough to support their preferred lifestyle, according to U.S. News & World Report. They need to create a budget and make necessary adjustments if their retirement income can't cover their total expenses. Clients also have to remain fit as much as possible and anticipate health problems in the future so they can make necessary adjustments, such as age-proofing their home. It is also important to have a supportive family and friends to have an active social life and sense of security in their advance years. – Yahoo Finance

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