Our daily roundup of retirement news your clients may be thinking about.
The number of dual-generation retirements is on the rise because of factors, such as increased longevity and the fact that those who belong to the Greatest Generation married at a relatively young age, according to this article in The New York Times. This is historically unprecedented, where you have older people and their still-older parents. Families are having to figure out those intergenerational relationships, said Phyllis Moen, a professor at the University of Minnesota. The New York Times
Parents are better off building their nest eggs than saving for their children's education at the expense of their financial security in retirement, writes Sally Brandon, vice president of client services at Rebalance IRA. "[T]heyll have an easier time paying tuition in the short term, but down the road their kids may end up having to support them right when they should be saving for their own retirement," Brandon argues. "[C]hoosing their retirement doesnt mean that they cant help your children financially and it doesnt mean they are being a bad parent or are being selfish. It does mean that they should prioritize saving for retirement." Time Money
Baby boomers are more likely to defer retirement if they provide financial support to their adult children, according to a report from Hearts & Wallets. More than one-third of this generation, or about 15.8 million boomer households, continue supporting their children and loved ones based on the research firm's estimates. "Boomers financially supporting adult children are more concerned about saving for retirement than outliving their assets," said Chris Brown, founder of Hearts & Wallets. CNBC
A financial adviser told a client who needs to complete his M.B.A. not to tap his assets in his 401(k) plan to pay his tuition amounting to $120,000, according to this article in The Wall Street Journal. Doing so would prevent his retirement savings to increase by compounding and result in a hefty tax penalty, the expert said. To cover his educational expenses, the client was advised to tap the three 529 college savings plans that he and his wife have put up for their children. The Wall Street Journal
Most retirees are more inclined to relocate at least once during the golden years, according to a study by Merrill Lynch and Age Wave. "Retirement can present new opportunities to live anywhere in America and where our nations aging population chooses to live will have implications on communities and businesses nationwide," says Merrill Lynch's Gao-Wen Shao. Research findings also show "that half of retirees (49 percent) didnt downsize in their last move and three in 10 actually moved into larger homes," Shao says. Fox Business