Our daily roundup of retirement news your clients may be thinking about.
Retirement confidence is up, but why?
Retirement savers in the U.S. and other countries feel more confident that they would achieve their targets, with 51% of American respondents with employer-sponsored retirement plans saying that they are very confident about meeting their goals, according to a survey commissioned by State Street Global Advisors. The growing retirement confidence can be attributed to the improvement in the economy, said Fredrik Axsater of State Street Global Advisors. However, another survey by the Employee Benefit Research Institute and Greenwald & Associates finds that the confidence is expressed entirely by those who have a retirement plan, a traditional pension plan or a defined contribution plan. --CNBC
Long-term disability insurance vs. long-term care insurance
When choosing between a long-term disability insurance policy and a long-term care policy, clients need to consider the number of years to go before retiring, according to this article on MarketWatch. They also need to account for their health conditions and their ability to pay the premiums. Retirement savers may prefer a life insurance policy with a long-term care rider to traditional long-term care coverage, or include riders to a long-term disability or a long-term care policy. --MarketWatch
Is my Social Security safe from debt collectors?
The Social Security Act prevents credit card companies and banks from garnishing the Social Security benefits of retirees who have outstanding debt with them, says Germi Cloud, a certified national Social Security advisor. Clients are advised to have their retirement benefits protected by depositing the money directly in a bank account, Cloud says. "If you get a check, you could very well lose those [section 207] protections. You'd have to prove it's protected money [in your account]." --Yahoo Finance
The importance of creating multiple income streams in retirement
People are better off having multiple income streams after they retire as living costs are inevitable because of inflation and pensions are on a decline, according to this article on Kiplinger. Retirees who want to have more sources of retirement income may consider investing in dividend-paying stocks, taking a part-time job and renting out properties. They may also buy a fixed or deferred annuity to get a guaranteed income throughout their golden years. --Kiplinger
Can states help more workers save for retirement?
California, Illinois and Oregon have created a retirement program for people who have no access to workplace 401(k) plans, according to this article on CBS Moneywatch. In response to critics of retirement programs, Washington is looking at a proposal that would allow private firms to provide retirement plans to these workers. While these state-run retirement programs have yet to get off the ground, they are drawing attention to the importance of retirement saving. --CBS Moneywatch