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

Will my clients pay taxes in retirement?

Despite the many benefits clients receive as they age, retirees will still owe taxes after they exit the workforce, according to this article on Motley Fool. Clients will be required to pay short-term or long-term capital gains taxes on assets sold, depending on how long they own these investments. Once they reach 70 ½, they have to take required minimum distributions from their 401(k) and IRAs, and these withdrawals are subject to income tax. A portion or the full amount of their Social Security retirement benefits may also be taxed depending on their provisional income.

(Adobe Stock)

Why there is no retirement crisis

Although surveys show that many people are not saving enough for the golden years, these findings should not be taken to mean that all of them face bleak retirement prospects, according to this Yahoo Finance article. This is because retirement savings should not equate to retirement resources, and most people have resources that are more than what they have in their retirement accounts. The article identifies the so-called retirement crises and explains how clients can deal with these issues.

What millennials can do to prep for retirement

Clients should save for retirement even if they start late, while millennials may want to set aside 15% of their annual gross income to secure their golden years, a personal finance expert suggested in this Fox Business report. "It seems difficult at times, but that’s where you have to make sacrifices," says the expert. "And especially for the millennials that have student loan debt that so many do, you have to make sacrifices and you have to get out of that debt as quickly as possible, have that emergency fund in place."

Consistency is the key to investing when you're retired

Clients can increase their odds of having a secure retirement if they know the right strategies for investing in active and dormant accounts, an investment adviser writes in this Kiplinger article. For example, they should park their mutual fund shares in their active accounts, such as 401(k) plan and IRA, so they can turn market volatility to their advantage, the expert says. "Once your account goes dormant, you're better off investing in assets that will not lose value due to market volatility. Examples include certain annuities (fixed and indexed), certificates of deposit or exchange-traded funds with a stop-loss attached to it."

How to know when your client should take an early retirement

Clients who opt or are forced to retire early are advised to know the choices that their pension plan provides, according to this article on Forbes. They should also determine the benefits they will receive if they take an early retirement, as well as make a good estimate of income needed to maintain their lifestyle. People who intend to retire early are advised to determine the amount of retirement benefit that they will receive from Social Security.