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

Early retirees need health insurance as much as pension or savings
Although clients may have amassed substantial savings for their retirement or expect a pension after they retire, they are not ready to leave the labor force for good if they have no health care plan, writes Pete Dunn. This is because health care costs are likely to increase into retirement, Dunn writes. "If you don’t have a retirement health care plan, you don’t have a retirement plan."  --USA Today

Retirement myths debunked
Retirement may not turn out the way clients expect, according to U.S. News & World Report. This article outlines several common myths about retirement that clients should be aware of. For starters, they should not expect retirement to be a piece of cake, the article says. "It's actually disorienting for some people," says David Schneider, a certified financial planner with New York-based Schneider Wealth Strategies. "There's an adjustment phase." Another myth: taxes will be lower. Clients'income will likely be reduced in retirement, which may make them think their taxes will decrease as well. But often, older Americans often have fewer federal deductions and dependents to claim, which could mean a greater percentage of their income goes to Uncle Sam. One more common misconception: They'll be able to retire when they want to. In fact, half of U.S. workers retire before they expect to, according to the 2015 Retirement Confidence Survey from the Employee Benefit Research Institute. Of those, 60% leave early because of health issues. Others were pushed out of a job due to company downsizing, while some had to care for a family member.  --Yahoo Finance

Easing the financial impact of divorce in retirement
People who are getting a divorce are experiencing financial pain aside from emotional pain, so they are advised to review their financial plan to account for the changes in their life, according to Forbes. They also need to change the beneficiaries in their retirement accounts as well as the designated power of attorney on their estate planning. Those who are heading for divorce have to make the most of the catch-up contributions in their retirement plans and consider hiring a financial planner or advisor to address their debt and cash flow issues.  --Forbes

Stock market tumble could keep pension funds behind
The recent movement in the stock market could hurt public employee pension funds in many states, most of which have yet to recover from the past recession, according to this article on CBS MoneyWatch. Some pension funds in California and other states may see minimal impact due to their diversified portfolio and long-term approach. Keith Brainard of the National Association of State Budget Administrators says the market decline creates an opportunity to buy cheap stocks that can grow in value over time. "These funds measure themselves in terms of their performance over decades rather than months, days and years."  --CBS Moneywatch

Don't make this 401(k) mistake in 2016
Cashing 401(k) money and depositing it to a regular bank account after resigning can be a very costly mistake that workers do to their retirement savings, according to the Motley Fool. To avoid this mistake, clients should consider leaving their 401(k) assets with their former employer or consider moving the money to their current plan. They may also transfer their old 401(k) assets to an IRA.  --The Motley Fool

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