Our daily roundup of retirement news your clients may be thinking about.
New retirement travel option: House sitting
Baby Boomers who are looking to travel on a budget or for pet sitters while they travel can take advantage of the newest company to enter the growing sharing economy, TrustedHousesitters. The company allows travelers looking for cheap accommodation to connect with homeowners looking for trustworthy people to watch their house and pets. Retirees are advised to be careful and to ensure they check all the specifics before entering the sharing economy, either as a provider or as a consumer, to avoid unexpected liabilities or expenses. –Fox Business
Opinion: Alicia Munnell is wrong: Social Security needs a quick fix
To keep the Social Security program solvent through 2090, the U.S. government needs to implement an immediate 12% tax increase or a 16% benefit cut; but it would need a 32% tax increase or a 23% benefit reduction if the government waits until 2034 to act, according to this article on MarketWatch. The article notes that waiting too long to fix Social Security would affect tens of millions of lives and would mean bigger and more abrupt changes to benefits and taxes than are currently necessary. The article urges the government to act soon and to stop depending on myths to justify their policy proposals, or lack of proposals to implement. –MarketWatch
15 worst states for retirement
New York, New Jersey, and California lead the states that offer the least advantages for retirees, according to Kiplinger. The ranking is based on factors, such as taxes, and health care costs. Also on the list of the least friendly states for seniors are Connecticut, Illinois, Massachusetts, and Rhode Island. –Kiplinger
She revamped her retirement plan after a divorce. Is she on track?
A 60-year-old divorcee decided to adjust her retirement plan after it was learned that her retirement income would not be enough to cover her needs because of inflation and increase in health care costs, according to this article on Washington Post. Even if she decides to work part-time, she needs to reduce her mortgage payment and living expenses, including housing costs by downsizing. The senior also should set up an emergency fund account that is worth two years of expenses. –Washington Post
How to retire like the rich (Even if you’re not)
Seniors with modest means can still pursue a comfortable lifestyle in retirement even if only wealthy retirees can afford it, according to U.S. News & World Report. To accomplish this, they need to identify their priorities and learn how they direct their funds to these planned activities, according to financial experts. –U.S. News & World Report