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

Retirement lessons clients can teach their children
Karen Lincoln says her father's life and death taught her the importance of long-term care insurance. Lincoln is an associate professor at the University of Southern California's School of Social Work, and just one of the experts quizzed by The Wall Street Journal when it assembled a group of retirement researchers, academics and retirees to discuss the retirement issues they learned from their parents. David Blanchett, Morningstar's head of retirement research, noted that simply having a retirement plan is one thing that parents can teach their children as they prepare for the golden years. And Jonathan Guyton of Cornerstone Wealth Advisors said his parents taught him to find ways to sustain retirement income because he may live longer than expected.  --The Wall Street Journal

How much retirement income will $1 million generate?
The income that clients can generate from $1 million in retirement savings when they leave the workplace is dependent on age, sex and other factors, according to this article on CNNMoney. As one example, a 65-year-old man can expect about $5,660 every month if he uses his $1 million nest egg to buy an immediate annuity.  A 65-year-old woman would receive somewhat less, however--about $5,440 a month--because women generally live longer than men. And a 65-year-old couple (man and woman) would receive less still--roughly, $4,800 a month--since at least one member of a couple is likely to be around longer than just the man or woman alone. Age also matters. A younger person who buys the same $1 million immediate annuity would receive less than his 65-year-old counterpart; and older person would collect more.  --CNNMoney

How to design the ideal retirement portfolio
Investors are advised to shift from investment asset management to income allocation mind-set as they approach retirement since they need to work toward achieving income replacement, according to this article on MarketWatch. An ideal retirement portfolio usually includes various but more secure investment types in order to receive adequate income throughout the golden years. Choosing these investment vehicles should be based on when income is projected to decrease and how much the shortfalls will be.  --MarketWatch

Social Security trustees: Program is healthier, Congress still must act
Social Security's financial standing improved last year as a result of a better economy and rising workers' wages, according to a report from Social Security trustees. While the report changed the year that the program's old-age and disability funds will run out from 2033 to 2034, Congress needs to address the funding woes of Social Security's disability program since its trust fund is expected to be gone by the end of 2015, the report claims. Disabled workers can expect a 19% cut in their benefits if lawmakers fail to act to fix the problem, the report adds.  --Los Angeles Times

On retirement, what’s good for California could be good for the country
California is pushing for a state-run retirement saving program that will be available to workers who have no access to employer-sponsored 401(k) plans, a move that has the support of President Barack Obama, according to this editorial in The New York Times. This came after Congress ditched a proposal that seeks to create a similar program for all workers across the country, the editorial says. Such a plan could benefit many Americans as it would curb plan fees and investing errors by pooling contributions and professional management, the editorial adds.  --The New York Times

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