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

Don’t let unforeseen costs destroy clients' retirement
Investment costs including inflation could put a heavy dent on retirement income and ruin the plans retirees have for their golden years, according to this article on MarketWatch. For example, retirees who expect their portfolio to produce 7% returns would often only get 5% once the typical 2% costs are factored in, according to the article.  Retirement investors are advised to opt for low-cost investment management, low-cost investments and tax-deferred or tax-exempt investments, and to find ways to curd hidden taxes on their Social Security and Medicare. This article notes that hiring a financial advisor can be costly for investors, but also points out that the fee would be much smaller compared with potential losses for not getting professional help.  --MarketWatch

Can downsizing save your retirement?
Homeowners are advised to consult their family and a financial advisor to know if they need to downsize and when it would be best to move to a smaller home, according to this article on Forbes. Downsizing could be cost-effective if it would enable homeowners to save 25% of total expenses, such as mortgage payments, real estate taxes and other one-time costs. However, it's not always a slam-dunk decision. “People overestimate the value of their home if they’re selling, and they underestimate the total cost of a new home,” an expert says.  --Forbes

Offering alternatives to lofty retirement dreams
Financial advisors need to offer their clients a number of strategies on how secure their finances in retirement so they can weigh their options and choose the one that would be most suitable for them, writes Shannon Eusey, president of Beacon Pointe Advisors. "As with all best-laid plans and good intentions, sometimes things go awry with retirement planning. However, by exploring alternative saving tactics, you can still achieve your goal," Eusey says.  --CNBC

Statistics show what retirement is really like -- and why we're not ready
A survey shows that 20% of married retirees who reached the age of 85 left no non-housing assets when they died, with 12% leaving no assets at all, suggesting that Americans may not be ready for retirement, according to this article on The Motley Fool. Also, many people may be unprepared for a post-career life as a study finds that healthcare expenses in retirement could amount to an average of $240,000 per couple. Long-term insurance premiums also increased 9% in 2014, boosting the already expensive cost of the coverage. --The Motley Fool

5 pre-retirement mistakes even the smartest people make
Not developing a claiming strategy for Social Security benefits is one of the mistakes many pre-retirees make, according to this article on Time. Many pre-retirees also intend to pay off their mortgage before hitting their golden years and to shift their assets to less-risky investments too soon, moves that would cost them a lot. Other people also make the mistake of forgoing long-term care insurance and not having a plan for their post-career life.  --Time

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