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

 

Fighting inflation in retirement

 

Inflation poses a financial risk in retirement, so seniors need to work longer and delay their Social Security benefit to boost its value. They should also retain their equity investments to enable their portfolio to keep up with inflation. Understanding the use of health insurance can also help retirees save on prescription drugs and other medical costs, decide whether to enroll in traditional Medicare or Medicare Advantage and avoid hefty penalties. –Morningstar

 

Why retirees are moving again

 

The number of retirees who relocate to other places is on the rise again after the 2008 downturn, with many of them moving to Florida and Arizona. Retirees are able to move again because improvements in the real estate market allow them to sell their houses and their stock portfolios have improved considerably. Also, housing costs are high in California and the Northeast and they can no longer endure the cold weather, with other moving to places that offer better job opportunities for retirees. –Yahoo Finance

A costly squeeze on Social Security benefits

Although a new law scraps two Social Security claiming strategies that had allowed retired couples to optimize their benefits, these strategies are still available to those will turn 66 by May 2 or 62 before January 1. A one-earner couple could lose more than $60,000 in benefits as a result of the changes and those in lower- and middle-class groups are likely to collect benefits earlier than planned, says William Meyer of Social Security Solutions. "It's not an easy, no-brainer decision." –Kiplinger

The 5-minute 401(k) investment plan

Workers who have signed up in their employer-sponsored retirement plan are advised to set their contribution rate at not lower than 10% of their monthly salary. They may include more risky investments while they are young and become more conservative through the years by gradually shifting to bonds. When choosing investments to include in their portfolio, clients are advised to diversify their choices or they may accept the default investments provided by the plan. 401(k) participants may rebalance their portfolio once a year to remain on track with their asset allocation targets and avoid making changes because of volatile markets. –CNN Money

Fixing the weakest link: Strengthening retirement security by default

Tapping defined contributions plans in retirement can pose a challenge for retirees, especially when their cognitive abilities start to wane in old age. Experts identify this as the weak link in retirement security since many retirees have insufficient financial literacy to address the risk of longevity. To help seniors manage their savings, retirement plans should offer default withdrawal features that pay out benefits that are determined through sound economic principles and actuarial expectations based on the retirees' age. –Forbes

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