Our daily roundup of retirement news your clients may be thinking about.
As more baby boomers age, withdrawals from 401(k) plans are becoming higher than new contributions, according to the Wall Street Journal. Data show that a net $11.4 billion were taken from tax-deferred savings plans last year. Millennial contributors and other products may offset the large outflow, asset managers hope. The Wall Street Journal
Retirees can increase their income by getting a home-based or flexible job or becoming a consultant, according to Motley Fool. More options include helping and serving others, turning passions into careers, joining market research, taking advantage of the sharing economy or creating a small unit that could be rented out. Motley Fool
A recent LIMRA study found that more retirees continue to have large student loan debt, accounting for 15% of their overall debt. Experts advise clients to pay off credit card debt first before focusing on student loans, as credit cards usually have higher interest rates. Clients are also advised not to take any loans from their IRA or 401(k) to pay off other debts. CBS MoneyWatch
The average individual retirement account balance has gone up from $25,296 in 2010 to $32,179 in 2013, as average contribution increased from $3,335 to $4,145 at the same time, but all of it is largely due to 401(k) rollovers and market gains, rather than more people contributing to IRAs. However, contributions to Roth IRAs are going up, with a median increase of 51.6% during the same three-year period, notes this article in MarketWatch. MarketWatch
Clients who have been divorced twice can collect Social Security benefits from both ex-husbands, provided they are 62 years old or older, as well as a divorced widow benefit if the husband has died and the marriage lasted more than 10 years. If the client is already collecting their own Social Security, they only receive the larger of their own benefits and the auxiliary benefit while if the client has suspended their own retirement benefits until age 70, they will only get the positive difference between their auxiliary and own, reduced benefit. Forbes