Our daily roundup of retirement news your clients may be thinking about.
Protecting your retirement income from Social Securitys mistakes
Some clients report that they received wrong information about Social Security rules from the agency's employees, according to this article on Time Money. The rules can be very complicated and the Social Security Administration has been hit with budget cuts, so clients are advised to educate themselves and learn the rules. They should check out the Social Security Administration's website to make sure they get the right information. SSA acts promptly to rectify any errors made by its employees and conducts training to improve their competency, says Dorothy Clark, the agency's spokeswoman. -- Time Money
Target-date funds are no substitute for goals-based investing
Target-date funds appear to be an attractive option for retirement investors since stock allocation in these funds declines as they approach retirement, according to this article on MarketWatch. However, asset allocation should not be based on the investor's retirement year. A goals-based approach remains an effective strategy in financial planning and should not be replaced by target-date funds. -- MarketWatch
Social Security vs. the world: Are Americans getting shortchanged?
Although the U.S. lags behind other countries in public pension replacement rates based on data from the Organization for Economic Cooperation and Development, the country's rate indicates Social Security isn't the only program that secures the financial stability of Americans, according to this article on Motley Fool. Also, income levels in the U.S. are higher than other OECD countries, meaning the country's workers have bigger capacity to save for retirement. Even if Social Security doesn't provide full replacement of pre-retirement income, whats important is that people have a financial plan for their golden years. -- Motley Fool
How to generate retirement income from savings
Retirees may consider spending just the returns from their retirement savings to ensure they will not outlive their nest egg, according to this article on Forbes. They are also advised to use their principal sparingly and minimize their withdrawal during a market downturn so they will have enough assets for recovery. Buying an immediate annuity is another option retirees may consider to secure a lifelong retirement income. -- Forbes
The little-known retirement match you can't afford to miss
Aside from the employer's 401(k) match contributions, the Retirement Savings Contributions Credit is another match that workers can receive when participating in the retirement plan, according to an article on DailyFinance. The tax credit will match 50% of 401(k) contributions --up to $1,000-- made by single taxpayers with adjusted gross income of $18,000 or less or joint filers with gross income of $36,000 or less. Taxpayers who are singles with $30,000 in gross income or joint filers with gross income of $60,000 can receive up to 20% in credit. -- DailyFinance
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