3 unexpected retirement costs that can shake up clients’ finances
Health care, travel and taxes are three living costs that are consuming more of retirees’ budgets than they originally planned, according to this article from CNBC. Among the retirees who participated in the survey by Capital Group, 43% said they were spending more than expected on health care. Travel expenses are 40% higher than expected; taxes 34%. Although clients cannot determine their health care expenses and taxes in retirement, they can improve their prospects by minimizing their investment fees, diversifying their portfolio and working with a financial advisor to protect their investments from a market downturn, says an expert.

Bloomberg News

Helping clients focus on retirement: ‘They need to be nudged’
An expert says that clients need some encouragement to build their nest eggs, as people do not save for their golden years despite facing bleak retirement prospects, according to this article from The Wall Street Journal. To encourage them to achieve their long-term retirement goals, a financial advisor should push clients to set monthly savings goals, the expert says. The advisor should also prompt clients to use automation tools that will enable them to make incremental increase in their contributions.

America's retirement system is too inconsistent
While the U.S. appears to be average when compared with other countries in terms of retirement income from Social Security, defined-benefit pensions, defined-contribution 401(k)s and individual retirement accounts, the country's retirement system lacks consistency, according to this opinion piece from Bloomberg. "The percentage of Americans 66 and older earning less than half the average income for the total population is, at 20.9%, way above the [Organization for Economic Cooperation and Development]'s average of 12.5%," states this opinion piece. "We have a system of retirement savings that on the whole seems to exacerbate inequality rather than ease it."

Supporting adult children could cost $227K in retirement
A report from NerdWallet says that seniors lose about $227,000 in possible retirement savings from helping their adult children pay for their groceries, rent or housing and other bills, according to this article on Forbes. “We don’t want to suggest that people don’t help their kids, but we found that some of these expenses might seem small on a monthly basis, but they really add up over time,” says a retirement specialist with NerdWallet. “Parents may not be realizing the degree to which this affects their retirement.”