Our daily roundup of retirement news your clients may be thinking about.
Several senators wrote to Labor Secretary Tom Perez calling for changes to proposed rules that would require financial professionals to meet fiduciary standards when providing advice to retirement investors, according to this article in The Wall Street Journal. "[W]e are concerned that the rule in its current form could stifle access to meaningful investment advice for millions of Main Street investors," the lawmakers said in the letter. -- The Wall Street Journal
Although payroll taxes can still cover 75% of Social Security retirement benefits after 2034, when the program's reserves are projected to be depleted, millennial workers are advised to boost their savings rate to ensure they will have a sufficient nest egg after they retire, according to this article on CNBC. Saving more for retirement means they contribute to their 401(k) plan and take advantage of their employer's match contributions. Opening an IRA is also a good option to add to their savings in 401(k) plans. -- CNBC
Workers can expect reduced spousal benefits on their partner's record if they opt to collect the benefit before reaching their full retirement age. They may also face a hefty penalty from Social Security's deemed-filing rule, according to this article from The Motley Fool. Under the rule, clients who file for a spousal benefit before full retirement age are deemed to have applied for their own retirement benefit as well. Consequently, they would receive whichever is higher between their own retirement benefit and their spousal benefit. -- Time Money
Clients who are approaching retirement are advised to put greater focus on inflation protection and certain areas of their financial plan, says Christine Benz, Morningstar's director of personal finance. They also need to look into longevity and long-term care, but have to consider options other than insurance coverage to cover the costs of long-term care, since getting such insurance comes with a hefty price tag, she adds. -- Morningstar
A "joint life" can be the best gift that can be received by a spouse or a family member from retirees who have a pension or defined-benefit plan, according to this article on MarketWatch. Social Security beneficiaries and those who hold annuities also can provide their spouses a joint-life payout. IRA investors who have annuities within the account can set up joint-life payments with their spouse, while those who have the same products in non-IRA accounts can get a joint-life payment with family members and even friends. -- MarketWatch