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

Misconceptions and overconfidence hurting retirement, new research shows
Most Americans do not have adequate understanding about retirement as illustrated by the low scores in a test designed to gauge their knowledge in planning for the golden years, according to a report from the New York Life Center for Retirement Income at The American College. Despite the lack of knowledge, many of the respondents show a high level of confidence about their financial ability to plan for retirement, the report says. This mismatch of knowledge and confidence is a serious problem, says David Littell, the Director of the New York Life Center for Retirement Income, as it can lead to uninformed retirement planning decisions. Littell notes that Americans struggled to answer basic retirement planning questions in key areas such as Social Security benefits, annuities, retirement investments, longevity, and long-term care planning.  --Forbes

6 ways to increase retirement income
Purchasing an annuity and selling a life insurance policy that is no longer needed or affordable are among the ways for clients to boost their retirement income, according to this article on MarketWatch. Retirees who want to increase their income may opt for reverse mortgages and discounted lump sum payments of debt and other money obligations. They may also consider working in retirement to augment their retirement income and delaying Social Security benefits as such a move could boost the benefit value.  --MarketWatch

The powerful (and expensive) allure of guaranteed retirement income
Since the Great Recession, investors have chosen investments with a guarantee over those that promise higher growth potential but carry a greater risk, according to a recent study. As such, clients who invest their retirement savings become more interested in annuities while experts are pushing for annuities to be included in employer-sponsored defined-contribution plans.  --Time Money

Playing 401(k) catch-up might cost you $1 million or more
Workers in their 50s are allowed to make catch-up contributions to their 401(k) plans to boost their savings and prospects for a comfortable retirement, according to this article on DailyFinance. However, younger workers need to max out their 401(k) contributions to take advantage of compound interest, which enables their money to grow over the years.  --DailyFinance

Best strategies to boost your Social Security benefits
There are a number of effective claiming strategies for people to maximize their Social Security benefits, according to an article on Kiplinger. The retirement benefit will be based on the earnings in the 35 highest-paid years, the age to file for benefits, and marital status. When choosing the right strategy, clients need to account for these variables, as well as the possibility that they may live longer than expected.  --Kiplinger

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