Our daily roundup of retirement news your clients may be thinking about.
A study by the Stanford Center on Longevity found that the percentage of older Americans aged 75 and above who take five or more prescription drugs jumped to 47% in 2011 from 24% in 1999, according to this article on CBS Moneywatch. Also, more people in the 65-74 age group took prescription drugs in 2011, the study found. While the results are expected, the findings suggest that older people who are taking this amount of prescription drugs are more likely to prone to confusion, dizziness, falls, including unanticipated drug interactions. –CBS Moneywatch
Members of religious groups will not be subject to Social Security taxes provided they meet certain conditions, according to the Motley Fool. Also exempted from paying Social Security taxes are people working for the federal government. Foreign nationals who work for their own governments in an official capacity including foreign students and educational professionals in the U.S. are also exempt from these taxes. –Motley Fool
Young workers should consider investing in a Roth IRA, an expert says. While they pay outright taxes for their contributions, the account offers tax-free growth while withdrawals in retirement will not be subject to taxes. Young workers are in lower tax bracket so the taxes they will pay now on the contributions will be lower than when they make these contributions later on. –Money
Retirement savers are advised to avoid hidden fees in the plan, including revenue sharing, which can significantly reduce their investment returns, according to Kiplinger. To avoid these hidden costs, clients should choose index funds, which do not share revenue. They are also advised to use the plan's brokerage window to select low-cost investment options, such as exchange-traded funds. –Kiplinger
Many retirees should realize that using a file-and-suspend strategy to claim their Social Security retirement benefits can be more complicated than they think, according to this article on Yahoo Finance. Also, clients should realize that they cannot rely on Social Security as a lone source of their retirement income and they need to know the rules for spousal benefits. While clients are advised to understand their Social Security benefits, it is wrong to think that retirees lose their benefits if they continue working past the retirement age. –Yahoo Finance