Our daily roundup of retirement news your clients may be thinking about.
Apart from retirement savings, home equity is another source of wealth that Americans can use to help fund retirement, according to this article on Forbes. “Reverse mortgages, specifically the government-insured HECM, support strategies to help retirement-age homeowners ‘age in place,’ in a familiar setting where convenience and long-term relationships contribute to a preferable quality of life,” says John Button, president and CEO of ReverseVision. –Forbes
People will need a bigger nest egg not because of the healthcare inflation or the Affordable Care Act but due to increase in life expectancy, according to this article on Fortune. A report from Fidelity Investments indicates that a 65-year-old couple has to increase their retirement savings by as much as 11% to $245,000 this year as an average male's life span rose to 85 from 82 while longevity of his female counterpart jumped to 87 from 85. “That’s good news. The flip side is that you need to save more,” says Fidelity's Sunit Patel. –Fortune
Some 30% of Medicare beneficiaries can expect their monthly Part B premiums to increase 52% to $159.30, with other retirees seeing their premiums rise to up to $509.80 if their income is higher than certain thresholds, according to this article on USA Today. Based on a report from Boston College's Center for Retirement Research, the premium increase can be attributed to a provision in the law that prevents Social Security from raising cost-of-living adjustments for individual’s benefits. “Under current law, Part B premiums for other beneficiaries must be raised enough to offset premiums forgone due to the hold harmless provision,” says True Wealth Group CEO Mark Lumia. –USA Today
While retirees will continue to receive Social Security survivors benefits on their deceased spouse's record after remarrying after the age of 60, the same cannot be said for divorcees, according to this article from Bankrate. "If you remarry, you generally cannot collect benefits on your former spouse's record unless your later marriage ends (whether by death, divorce or annulment)," according to the Social Security Administration. –Yahoo Finance
Retirement planning has evolved over the years, so clients need to prepare for the changes, such as increased longevity and post-career work, to ensure they will have a secure and rewarding life in the golden years, according to this article on Time Money. Clients also need to be innovative when creating a retirement income plan, which should also account for the type of lifestyle they want to have after leaving the workplace. –Time Money