Our daily roundup of retirement news your clients may be thinking about.
Retirees who want to reverse their decision to collect their Social Security benefit may withdraw their application within 12 months since the time they started receiving the benefit, according to Kiplinger. This means they are required to return all the benefit payouts they received, including the spousal benefits collected by their spouses. They may defer the benefits until they turn 70 to increase the benefit value. –Kiplinger
Clients who are to tap their nest egg for retirement income are advised to assess their savings before deciding their withdrawal rate instead of focusing too much on finding the "safe" rate, according to Money. They also should adjust the rate depending on how their investments perform in the market. Annuitizing a portion of their retirement funds is recommended if they want to create a guaranteed income stream aside from their pension or Social Security. –Money
Making retirement decisions can stir anxiety particularly among retirees who are single and will have to deal with potential traps and other challenges on their own, according to Forbes. Time-sensitive products are among the things that single retirees avoid as much as possible, as these products imply restrictions and limitations. Solo retirees also tend to demand their financial advisers to put their proposals and recommendations in writing, and may employ more than one adviser to help them make financial decisions. –Forbes
Although the 4% retirement withdrawal rule is supported by historical data, retirees may need to tap their savings at a smaller rate to ensure they won't outlive their nest egg, according to CNNMoney. However, a bigger withdrawal rate is recommended if returns from their investment portfolio rise as a result of improved market performance. Retirees are advised to start with the 4% rule and make adjustments to have a comfortable life as possible without the risk of running out of money in their advance years. –CNNMoney
Retirees are advised to beef up their knowledge about long-term care even before they will need it since understanding it will require a lot of unfamiliar terms, according to Morningstar. Also, the financial aspect of long-term care can be extremely complicated. Know some of the most common terms related to long-term care, such as activities of daily living, skilled nursing facility, nursing home and assisted living facility. –Morningstar