Our daily roundup of retirement news your clients may be thinking about.
To fix the current retirement saving system, the federal government offers the myRa account for workers with no access to workplace retirement plans. But such a program is not enough to address the problem, write Teresa Ghilarducci, a professor of economics at the New School for Social Research, and Hamilton E. James, president and chief operating officer of Blackstone. To help people build an adequate nest egg, the government should offer a guaranteed retirement account for all workers and employers that would provide a supplemental stream of income until their and their beneficiary's death, the experts say. The proposal "would guarantee millions of Americans safe and secure retirements that would benefit them, their families and the nation’s economy." -- The New York Times
Widows, widowers and divorcees who are near retirement are advised to consult with an advisor, in this article, in order to determine the Social Security claiming strategy that will optimize their benefits. For widows and widowers, they have the option to file for a survivor benefit on their deceased spouse's record, which could be bigger than their own retirement benefit. Divorcees who reach the age of 62 are entitled to a spousal benefit which is 50% of the full retirement benefit of their former spouse, but to qualify they should have been married for at least 10 years and never remarried. -- USA Today
Research shows that baby boomers haven't saved enough for retirement, so they need to deal with this shortfall by setting realistic goals. The next thing they need to do is determine their financial and investing position and how long they expect to live. They will also need to create a plan to realize their retirement goals based on their circumstances and needs. -- Forbes
Claiming Social Security retirement benefits early can be a good option for clients who don't expect to live long, but for the rest, delaying the benefits can help ensure they will adequate income through their golden year years, writes Tim Maurer, director of personal finance for Buckingham and The BAM Alliance. A hypothetical study finds that people are less likely to outlive their savings if they defer their retirement benefits to a much later date, Maurer writes. "Waiting is like purchasing longevity and inflation insurance for what will hopefully be a long and prosperous retirement." -- CNBC
Retirement investors can use annuities to help build an adequate nest egg but they need to know more about these products before investing their assets in them. While annuities guarantee income in retirement, clients need to know that these products charge hefty fees, which could eat away a lot of potential earnings when the money is invested outside. Annuities are a good option for investors who are in a high tax bracket and seek tax-deferred savings on investments. -- MarketWatch