Our daily roundup of retirement news your clients may be thinking about.
Workers may consider leaving their 401(k) retirement plans if their employer doesn't match the contribution they make, according to this article on Forbes. Leaving the plan is also a smart move if it doesn't offer quality investment options. Also, there is reason for workers to abandon their 401(k) plans if the funds are over-priced. Forbes
Clients can raise additional funds for their nest egg by turning their hobbies or skills into a profitable business and increasing their insurance deductibles, according to this article on The Motley Fool. They can also incur more savings for retirement if they can get the same insurance coverage but for less than the price of their existing policy and a rate deduction from their credit card company. They can also save more by opting for less costly products and services and selling personal belongings that they no longer need. The Motley Fool
Clients are advised to pause for a while and reflect on what they want to have and do in retirement so they can adjust their plans accordingly, according to this article from U.S. News & World Report. They may need to evaluate their targets and change their outlook based on their hobbies and interests. Clients also need to understand their retirement plan is a work in progress, so they should not feel discouraged if things don't turn out the way they planned. Yahoo Finance
Retirees cannot expect Medicare to foot the bill for their hospital stay if the service they received is classified as observational status, according to this article on Time Money. Clients are advised to clarify how their stay in the hospital will be classified and raise the issue with the physician if they are displeased with the classification. They also need to know the Medicare coverage they have and ask if they are allowed to take the medicine they brought while in the hospital. Time Money
Sens. Elizabeth Warren, D-Mass., and Claire McCaskill, D-Mo., called on the Government Accountability Office to conduct a study to determine how the garnishment of retirees' Social Security benefits to offset their student loan debt would affect the seniors' finances, according to this article on MarketWatch. The number of households headed by people aged 65 and 74 with student loans soared between 2004 and 2010, according to a GAO report. A survey shows that the mean annual income of people aged 65 and older stood at $33,852 in 2013, while another survey finds that only 37% of retirees voiced confidence with their ability to secure their finances in retirement. MarketWatch