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

Lack of federal action has spurred state pension initiatives

The federal government has yet to pass adequate measures to address the looming retirement crisis, prompting states to offer or consider creating retirement programs, writes Alicia H Munnell, director of Boston College Center for Retirement Research. While these programs will enable workers who have no access to an employer-sponsored retirement plan to build their nest eggs, a state initiative just "a second-best alternative," Munnell writes. "A national auto-IRA plan would be a much more efficient way to close the coverage gap, offering substantial economies of scale and avoiding the laborious, time-consuming, and expensive process of setting up 50 different state plans." – MarketWatch

Can clients have two 401(k) plans at the same time?

Retirement savers are allowed to contribute to two 401(k) plans within the year, provided their overall contributions will not exceed the elective deferrals, according to The Motley Fool. The elective deferral limit for 2016 is $18,000 or $24,000 for those aged 50 and older, who are entitled to $6,000 in catch-up 401(k) contributions. – The Motley Fool

Here's how debt can wreck your client's retirement

Incurring heavy debt can hurt the chances that people can have a financially secure retirement, according to USA Today. To avoid this, pre-retirees are advised to pay down their credit card debt and pay off their home mortgage before retiring. They also should get rid of student loan debt to ensure they will have a stress-free life after retiring. – USA Today

How do you know if clients are prepared for retirement?

Clients need to have other income sources in retirement to secure their finances since Social Security benefits will not be enough to cover their needs in the golden years, according to Nasdaq. Those who want to prepare for retirement with limited income are advised to have a good retirement plan, consider downsizing and create an emergency fund. They are also advised to cash out their retirement accounts and place the money in CD ladders. – Nasdaq

Why long-term care insurance is becoming a tougher call

Many senior clients have no option but to continue their long-term care insurance coverage even as they face hefty premium increases, according to Kaiser Health News. “I have no choice. If I drop my insurance, I’ve thrown away all that money. If I pay less, they’re not going to cover what I need,” one senior says. – Money

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