Our daily roundup of retirement news your clients may be thinking about.
Elizabeth Warren wants to rescue stranded 401(k) plans
Sens. Elizabeth Warren, D-Mass., and Steve Daines, R-Mont., have introduced legislation that calls for a database of all retirement accounts, and for investing abandoned accounts in target-date funds, according to this article on Bloomberg. The bill is intended to offer a solution to the retirement rollover problem. “This is a commonsense approach that will empower individuals to take control of their retirement future,” said the Montana senator in a statement. –Bloomberg
Could retirement eventually be a thing of the past?
More seniors are working on a full- or part-time basis through retirement, with their ranks increasing to 18.8% in May from 12.8% in the same month in 2000, according to an analysis of Bureau of Labor data by the Pew Research Center. Greater numbers of older people also are engaged in full-time work, as the number of those who work below the cutoff set by the BLS for full-time status dropped to 36.1% in May from 46.1% in May 2000, the report says. The trend can be attributed to the increased longevity of average Americans. –Huffington Post
‘Five-year plan’ in college could cut income and retirement
Staying in college for more than four years is not recommended, as it could reduce income and negatively affect retirement savings, while boosting tuition costs and student loans, according to an analysis by NerdWallet. The report estimates that students will be unable to have six-figure retirement savings if they extend their college stay to up to six years. –The New York Times
Staying fresh in retirement
Clients who plan to stay engaged in retirement should focus on more than just the effort needed to ensure they will not outlive their nest egg, according to this article on Forbes. They also need to plan their daily activities in retirement in order to have an active and fulfilling life through their golden years. –Forbes
Want to retire early like Derek Jeter and Barack Obama? Do these 4 things
Clients who want to retire early may want to save more than the recommended 10%-15% of their income, according to this article on Money. They should also prepare for their golden years by drawing up a well-prepared retirement plan. It pays to retire on good terms with the employer, while those who opt to work in retirement are advised to look for a job that they would enjoy. –Money