Our daily roundup of retirement news your clients may be thinking about.
Pension plans saw more than 89% increase in the value of their investments in stocks, bonds, cash and alternative assets over the last 10 years, while the country's gross domestic product increased about 42%, according to figures from Towers Watson. Pension investments last year were valued at approximately $22.1 trillion, which is 127% of the country's GDP, the highest on record. The Wall Street Journal
President Barack Obama's budget proposal includes a provision that would prevent workers from contributing to their 401(k) plans and other tax-advantaged plans if an account's annual income reaches $210,000, according to this article on The Motley Fool. Officials who support the proposal say that wealthy people don't need more tax breaks such as the incentive they get from a tax-advantaged plan, while those who oppose it argue that people should be allowed to invest in tax-advantaged plans if they think the strategy is best for them. The proposal is unlikely to pass as Republican lawmakers dominate Congress. The Motley Fool
Clients who want to have $1 million in retirement savings are advised to save early to give more time for their money to grow by compounding, according to this article on USA Today. They also need to have a long-term retirement plan and let their employer-sponsored retirement plan to work for them. Using automatic deductions for their savings and investing in the stock market are other strategies to help workers end up with $1 million in retirement funds. USA Today
Workers can expect greater Social Security benefits if they work longer, avoid filing for benefits very early, plan based on their full retirement age, and strive to increase their income, according to this article on DailyFinance. They are also advised to aim for maximum benefits, delay their benefits until 70, seek professional advice, know their spousal benefits, and work to boost their spouse's survivor benefit. Read the article for more tips to receive bigger Social Security benefits. DailyFinance
A couple who are both 66 and receiving retirement benefits may get married and wait for at least a year to become eligible for spousal benefit on each other's working record, according to this article on Forbes. They can file as a married couple if they opt for a Social Security "do over", which they can do since they started collecting retirement benefits in less than a year. Forbes