Our daily roundup of retirement news your clients may be thinking about.
Retirees should take advantage of the backdoor Roth IRA while they still can, according to Motley Fool. The backdoor Roth IRA allows people who exceed income limits to invest in a Roth IRA by using the nondeductible regular IRA. However, some lawmakers consider the account as an abuse of the plan, so the strategy might no longer be available in the future. Motley Fool
Clients may consider moving out of the U.S. during retirement to reduce costs. According to the government, more than 21,000 U.S. retirees get Social Security in the Caribbean and Central America. One couple chose to retire in Panama because of its proximity to the U.S.; however clients are advised to consider language barriers and moving costs. CNN Money
The complexity of Social Security is the reason why many clients near retirement are unable to guess what their benefits would be, according to Forbes. Social Security needs to be simpler and feature better social protections. A better-designed Social Security program would improve your clients' knowledge of their benefits, rather than relying on a better-designed Social Security Statement. -- Forbes
Episcopal Senior Communities is working with Stanley Healthcare to monitor residents at its senior homes through a Wi-Fi network. Software allows residents to be tracked while they move through the property and residents have a pendant with a button that would connect them to staff immediately. This program shows the industry's shift to using high-tech solutions to make it easier to care for people in retirement. -- Fortune
College debt and insufficient funds are the primary reasons why millennials do not save as much as they can for their retirement; however they still have robust funds, according to this article from Time. Still, studies found that millennials and baby boomers have nearly equal saving habits, putting away 8% and 9%, respectively, of their paycheck toward retirement. Findings also show that 75% of millennials carefully track their expenses while 67% stick to their budgets, compared to only 64% and 55% of boomers, respectively. -- Time