Our daily roundup of retirement news your clients may be thinking about.
Financial advisers are now recommending reverse mortgages as a good option for clients to boost their income in retirement, according to Kiplinger. This comes after the Federal Housing Administration revised the rules on reverse mortgages to reduce the cost and mitigate the risk to retirees. When taking a reverse mortgage, it is important that applicants know the basics, determine whether they benefit more from a lump sum payment or line of credit and make sure they pay property taxes, insurance and other dues. –Kiplinger
Divorce can hurt clients' retirement prospects, so couples in their 50s who are heading for a breakup need to make smart decisions to secure their finances in the golden years, according to Money. For example, they need to downsize to cut the housing cost since their income is expected to decline after divorce. They should also strive to an equitable division of assets, including retirement accounts. "Retirement planning and divorce negotiations go hand in hand when you are older,” says Janice Green, a family law attorney. –Money
Recent studies show that pre-retirees have a lot of catching up to do in retirement saving while most retirees are in good financial standing, according to Forbes. “It’s a story of two retirements,” says Marcy Keckler of Ameriprise, adding that “the next wave of retirees will need to be in charge of facing a number of challenges that the earliest wave of boomer retirees didn’t.” Also, they need to be in charge of their own investment diversification strategy, according to the article. –Forbes
The federal government should create individual “Guaranteed Retirement Accounts” to enable Americans to save more for their golden years and supplement their Social Security, according to a white paper by Teresa Ghilarducci and Blackstone Group President Tony James. The existing retirement saving system is "broken," says Ghilarducci. While the proponents use a “politically loaded approach” to address the issue, “nothing short of a mandate will provide future generations of Americans enough income for a secure retirement,” the paper states. –The Wall Street Journal
People who are looking for the most suitable location to retire to will need to make a number of considerations based on their personal circumstances instead of relying on "best retirement place list", according to MarketWatch. When making a decision on where to move in retirement, clients should consider where they loved ones live and their tax burden once they relocate to the place. They also should consider the crime rate of the place and access to health care services. –MarketWatch