Our daily roundup of retirement news your clients may be thinking about.

The single-best 401(k) upgrade

Despite the flaws in their 401(k) plans, clients can still optimize the benefits of their plans, according to this article on Forbes. To accomplish this, they will need work with other employees to research the industry to see how their plan stacks up to plans offered by other employers. Ask for an independent fiduciary audit so their employer can get advice on how to improve their retirement plans. Finally, opt for low-cost passive funds that provide diversification for their portfolio. –Forbes

Beware the retirement splurge

Studies show that many retirees are spending more than they should in the initial years of retirement, putting their nest egg at risk, according to this article on Time Money. This is because their retirement savings are most prone to market volatility and mismanagement during these years, which are considered the retirement “risk zone.” –Time Money

Older workers seeking options for reducing hours on the job

The number of Americans who continue working past the retirement age is on the rise as many seniors feel insecure about their retirement prospects, according to this article in The New York Times. A report indicates that some of these retirees favor a gradual transition into retirement regardless of their reason to work, prompting some employers to offer a "phased retirement" to seniors. Other companies prefer short-term contracts. "One thing we see is that employers are increasingly able to tap into a more flexible labor market, rather than going through formal HR structures," says AARP's Jean Setzfand. –The New York Times

10 money steps to take before clients’ 70th birthday

Retirees who are years away from their 70th birthday should consider revisiting their financial outlook, prepare for an extra major spending and update their estate plans, according to this article in U.S. News & World Report. They also need to combine their retirement accounts, inform their adult children about the whereabouts of their personal documents and defer receiving Social Security retirement benefits. They should continue investing even after they are retired, start traveling and begin giving cash gifts to their loved ones while spending more time with them.DailyFinance  

The US needs a better, simple retirement savings solution

Although the Obama administration has launched a retirement program for workers who have no access to workplace retirement plans as a way to fix the current retirement system, the federal government needs to consider offering a saving credit for all workers, writes Scott Hanson, a senior partner at Hanson McClain Advisors. Unlike the existing "Savers Credit" which is given only to low-income earners, the proposed savers credit will offer incentive that will be deposited straight to people's retirement account, Hanson says. "While there are numerous possibilities, real progress will only occur when Congress finally takes our retirement income shortfall seriously and, rather than adding a fix here or a fix there... instead designs a brand-new, truly inclusive savings system, from the ground up." –CNBC

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