Our daily roundup of retirement news your clients may be thinking about.
4 key considerations determining retirement withdrawals
Pre-retirees need to consider their life expectancy when computing the amount of money they will withdraw from their investment portfolio every year, according to an article on MarketWatch. They should also approximate the return rate of their investments and include the rate of inflation when determining their retirement withdrawals. Clients are also advised to consider their personal goals for their retirement savings, such as whether they want to leave something for their children or charities when they die. --MarketWatch
Watch out for pension predators promising quick cash
While a pension advance is an option for clients to raise money to pay off their bills, the cost could be substantial and the pension advance firm will require them to get a life insurance policy and name the company as their beneficiary, according to an article on CNBC. Federal agencies have warned the public about the disadvantages of getting a pension advance, with the Government Accountability Office urging a study to look into the market after it discovered "questionable business practices" among pension advance firms. Clients must avoid selling their pensions as much as they can, and talk to their financial advisor first if it is their last recourse to address immediate financial needs. --CNBC
3 challenges of extending your career after retirement
Many baby boomers are expected to continue working after reaching the traditional retirement age, but are advised to stay ahead in the workforce by continuously developing their professional skills, according to this article in U.S. News & World Report. They also need to adjust to the physical and cognitive demands of their jobs as their advance age makes them less agile and active. Older workers are very likely to fall ill, or look after a sick spouse or disabled parent, so they may seek a special work arrangement, such as a flexible schedule or telecommuting, with the employer, to keep their jobs. --Yahoo Finance
Whats missing in your new Social Security benefits statement
The annual benefit statements that will be issued by the Social Security Administration to workers provides information that will help them estimate the benefits they may get at given retirement ages or in case they become widowed or disabled. Clients need to understand that the benefit projections will be slightly lower than the actual benefit value, as these figures are based on today's currency value before inflation adjustment.--CNN Money
Social Security Q&A: My deceased spouse earned more, should I collect survivor benefits early?
A client whose spouse died before reaching retirement age and earned substantially more may opt to take her reduced retirement benefit when she turns 62 and seek survivor benefit on her spouse's Social Security record when she reaches 66, according to an article on Forbes. Her survivor benefit would be reduced permanently by nearly 30% if she decides to file for that benefit at age 60. If the client opts to take her survivor benefit at 62, she will get whichever is higher between her survivor benefit and her reduced retirement benefit. --Forbes
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