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

Social Security, Medicare face insolvency over 20 years, trustees report
Social Security and Medicare run the risk of becoming insolvent over the next two decades, according to a report from the trustees of the two programs. It is expected that Medicare’s hospital-insurance trust fund will have depleted reserves by 2028 or two years earlier than last year's estimates, the report says. Social Security will face the same fate by 2034 and be forced to implement a 21% across-the-board benefit cut if action is not taken by Congress. –The Wall Street Journal

(Adobe Stock)
(Adobe Stock)

America may finally be ready for mandatory retirement savings
A law for an expanded or mandatory workplace retirement savings plan is very likely to get lawmakers' approval after this year's presidential election, according to this article on Money. Reforms to improve the country's retirement system are gaining steam in Congress, says a retirement policy strategist. “We’re at a tipping point right now, with a lot of people reaching retirement with not enough money, a low rate environment, and states setting up their own retirement plans to fill the gaps.” –Money

Can a life-insurance policy offer investors a higher interest rate?
With interest rates going south, investors may want to invest in a Modified Endowment Contract, according to MarketWatch. An MEC is a type of cash-value life-insurance policy that provides advantages to investors, such as liquidity and the opportunity to receive considerable interest until economic trends improve. It is recommended for pre-retirees as well, since a 10% penalty is imposed on retirement plan withdrawals before the age of 59 1/2. Those who have a better health status are likely to get lower MEC fees. –MarketWatch

7 savvy retirement steps for Generation X
Generation X people may have achieved considerable financial assets now that they have reached mid-career, so they need to avoid falling into a lifestyle creep trap if they want to secure their retirement, according to Kiplinger. They need to pay off their debt, starting with those with high interest rates that are not tax deductible, including their home mortgage. They also need to put more money in their emergency funds, assess their insurance coverage and enhance their retirement saving strategies, such as contributing to a Roth account and taking advantage of catch-up contributions in their retirement plans. –Kiplinger

What every new college grad should know about retirement savings
Fresh graduates need to understand that retirement savings can be as important as paying student loans and attending to other immediate needs, according to this article on Fortune. While they are likely to defer retirement saving because they are many years away from retiring, or until they have higher earnings, young people should start putting away even a small amount in their retirement accounts and taking advantage of the benefits, such as employer match contributions. That way they will end up with more retirement funds because of the power of compounding over a long time. –Fortune