Our daily roundup of retirement news your clients may be thinking about.
About 30% of Medicare beneficiaries are expected to see an increase in their Part B premiums next year, according to this article on Kiplinger. Aside from those who will enroll in Medicare Part B next year, retirees whose premiums are not deducted from Social Security payments can expect an increase. Also, Medicare Part B premiums will rise for people whose annual incomes exceed $85,000, and those entitled to both Medicare and Medicaid. -- Kiplinger
Retirement investors have two types of annuities to choose from -- immediate and deferred-- and have the option to cover just themselves or get a joint-life type to cover their spouses, according to this article on Forbes. The amount of payout depends on the preferred manner of payout, which can be a life-only, 10-year period certain annuity, cash refund provision and installment refund. Annuity buyers have three options for payments, namely fixed or nominal income annuity, a cost-of-living adjustment provision and consumer price index. -- Forbes
Many people decide to start receiving their Social Security retirement benefits early without knowing that they can retire and opt to collect the benefits at a later date, according to this article on CNBC. Although delaying the benefits could be optimal, framing the advantages and disadvantages of such a move makes a big difference, says John Shoven of the Stanford Institute for Economic Policy Research. If advisors tell clients that by delaying, it may take 12 to 14 years before they break even, they may choose not to delay. But if advisors frame it by saying how much higher the monthly benefit would be, or what the expected rate of return would be for somebody like you, they will likely get a different answer. -- CNBC
A study by the Employee Benefit Research Institute shows that many people fail to save for retirement as they are obliged to attend to their children's financial needs as well as their parents', according to this article on MarketWatch. Pre-retirees are more likely than retirees to put their financial security in retirement at risk, with many of them overestimating their financial status, one expert says. While giving generously to loved ones isn't bad, the fact remains that people need to prioritize their future financial needs. -- MarketWatch
Clients who intend to retire early and expect to have a long retirement should be willing to take on investment risk to improve prospects for returns, according to this article on DailyFinance. They also need to have emergency fund in case the market is down and to avoid overspending as much as they can. Friends may offer great investment ideas that they can adopt to improve their investment returns, while having a plan on how to spend their free time will help them enjoy the golden years. -- DailyFinance