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

The immediate annuity: Instant retirement income and peace of mind
Retirees and those approaching retirement are better off having an immediate annuity than other kinds of annuities, which charge hefty fees and early withdrawal penalties and can be less suitable for many clients, according to this article on The Motley Fool. Those who have bought an immediate annuity will receive a monthly paycheck starting at retirement throughout their lifetime. Clients also can customize the terms based on their needs and preferences, such as increasing payments to adjust to inflation over time.  –The Motley Fool

5 ways clients can save money on prescription drugs if they're on Medicare Part D
Medicare Part D beneficiaries are advised to shop around for health coverage during open enrollment or face a premium increase of 13% on average, according to this article on Kiplinger. When looking around for the best coverage, clients need to compare overall costs for their prescription drugs and check whether a preferred pharmacy offers the cheapest drugs. They have to know if they can meet the special requirements by the plan before it can cover the costs and switching drugs would enable them to save. Also, retirees need to determine how the plan can match their budget. –Kiplinger

Gen Y gets an A in 401(k) plan participation: Study
Millennials have higher participation rates, savings and stock allocations in their 401(k) plans compared with young workers 10 years ago, according to a study by Vanguard. The findings can be attributed to regulatory reforms that resulted in changes in the way companies enroll their employees and the investment options they provide. "Millennials are the first generation to potentially be subjected to automatic enrollment [in 401(k)s] throughout their working careers. And they are taking advantage of professionally managed portfolios, like target-date funds," said Vanguard's Jean Young. –CNBC

12 common IRA mistakes to avoid that could cost clients thousands
Clients make a number of wrong assumptions about IRA that cost them money, such as thinking that they don't qualify to open an IRA because they already have a workplace retirement plan, according to this article on Forbes. Retirement savers also need to know that they can still boost their IRA contributions beyond the income limits even if the money will not be tax-deductible. Clients have to realize that they need to maximize their contributions to optimize the benefits. Know more about the common IRA mistakes people make and how to avoid them. –Forbes

4 keys for near retirees investing in today's market
Investors aged 40 and up are advised to use a different investing approach and drop the traditional strategies they have learned given the realities of the existing markets, according to this article on MarketWatch. Part of the new approach is to raise cash and employ hedging technique to build a portfolio "defense." They also need to remove weak investments from their portfolio and retain those that they would want to keep if their prices drop to a long-term attractive level. Planning on where they expect to be three to five years from now is recommended, as bear market conditions don't last long compared with bull markets. –MarketWatch

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