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

Do home renovations pay off during retirement?
A survey finds that home renovations done by retirees involve making a home office and improving their kitchens and bathrooms, according to this article on USA Today. Many retirees opt to renovate their current homes because they have no plans to spend their retirement elsewhere, an expert says. Those who intend to stay in their homes after they retire need to account for issues and limitations associated with old age and use long-lasting materials when renovating their properties, another expert says.  --USA Today

Small companies now have no excuse for a lousy retirement plan
Workers in small businesses pay hefty fees for their 401(k) plans since the high cost of setting up and administering the plans is passed on to very few employees, according to this article on Bloomberg. However, that will change as plan providers offer cheaper options to set up and manage 401(k) plans for small companies. These providers use technology that makes these tasks simpler and easier, thereby reducing the cost for small businesses and subsequently to employees.  --Bloomberg

House set to vote on easing TSP early withdrawal penalty
The House of Representatives is poised to act on legislation that would enable federal employees who are subject to special retirement rules to withdraw from the Thrift Savings Plan without paying a 10% penalty after retiring at age 50 or beyond, according to this article in The Washington Post. The tax code imposes such a penalty on withdrawals by investors in TSP and other employer-sponsored plans before they turn 59½. However, federal employees in law enforcement, firefighting and other agencies are allowed to retire as early as 50 if they have been in the service for at least 20 years. --The Washington Post

Moving your nest egg to a bed of red tape
The rule proposed by the Labor Department that would impose fiduciary standard on financial retirement advisers could be detrimental to people who are saving for their golden years, according to this opinion piece in The Wall Street Journal. "Regulatory compliance and other costs would make it prohibitively expensive for many financial advisors to offer many Americans of modest means a full range of financial products, particularly those where the adviser acts as a broker and gets a commission from selling them," the opinion piece states.  --The Wall Street Journal

Why you can't trust all retirement calculators
Clients are advised to choose the retirement calculators available online since not all of them don't take into account the factors that are really matter in determining their retirement number, writes Jon Stein, founder and CEO of Betterment. The location, spending patterns, and the investments' tax implication and growth prospects are among the considerations to make when determining a person's living costs in retirement, Stein says. "As you venture to the Internet to determine how much you'll need, first make sure you understand the inputs that make a good retirement calculator."  --CNBC

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