Our daily roundup of retirement news your clients may be thinking about.
Tips for clients worried about no COLA for 2016
Elderly clients worried about receiving no increase in cost-of-living adjustments in their Social Security benefits next year are advised to reduce their spending to keep financially afloat, according to this article on USA Today. They may also find ways to boost their income, recalculate COLA using CPI-E instead of CPI-W and raise their concern to their representative in Congress. Seniors need to realize that any COLA increase would just have gone to Medicare Part B premium increase for 30% of beneficiaries, while the countable earnings threshold will remain unchanged at $15,720 next year. --USA Today
The cost-of-living adjustment is what needs adjusting
As Social Security has announced that there will be no increase in cost-of-living adjustments next year, lawmakers are considering legislation that would stop Medicare Part B premiums from increasing to $223 from $147, according to this article on Time Money. Activists are hopeful that lawmakers will pass a bill to fix the problem. “There will a bigger spontaneous grassroots reaction to this than we might normally expect,” says AARP's Nancy LeaMond. --Time Money
When should children and retiring parents have ‘the talk’?
Seniors are advised to engage their children in a serious talk to discuss their estate plans and ensure they will pass on their wealth as stress-free as possible, according to this article on MarketWatch. The right time to have this talk is when clients are approaching retirement and have developed a good plan for their golden years. However, financial adviser Ric Edelman asserts that the time should be even before clients prepare for retirement. "Talking to your children early prepares them for college planning and for their own retirement planning as well." --MarketWatch
How companies are making employees save for retirement
Many workers are getting much-needed help from their employers when it comes to retirement saving, according to this article on Fortune. More company 401(k) plans have increased the default amount of contributions deducted from their employees' salaries, based on data from Vanguard. Employers also offer substantial match contributions as a way of luring new workers. However, the National Institute on Retirement Security says that 40% of households of workers aged 25 to 64 have no retirement savings at all. --Fortune
White House says looking to resolve lack of Social Security increase
President Barack Obama expressed concern over the "unintended" outcome of using a Social Security formula that results in no increase in retirement benefits for 65 million retirees in 2016, according to this article from Reuters. "There have been discussions that the administration has had with members of Congress about this issue and about our interest in trying to resolve it," said White House spokesman Josh Earnest. --CNBC
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