Our daily roundup of retirement news your clients may be thinking about.
Many people don't realize that they can get Medicare coverage without necessarily having to sign up for the coverage, according to personal finance website Motley Fool. Some private insurance companies now offer Medicare Advantage plans, which offer at least as much coverage as that offered in Part A and Part B that goes toward hospital and medical services (or what is now sometimes called "original Medicare.") And some of these policies go beyond original Medicare, offering things such as vision care, dental care, and prescription drug coverage. There are some caveats to consider. While original Medicare often has the patient paying 20% of bills, a Medicare Advantage plan may charge a low co-pay for each doctor visit. Those who intend to get a Medicare Advantage plan are advised to shop around and compare available plans and base their choice on their needs. --Motley Fool
More seniors have decided to carve out a lifestyle in their retirement years that combines consulting, volunteering and leisure time, accorfing to an article on The New York Times. One retiree quoted in the story coined the term "consulteering," to describe his approach to his next phase of life. Even after stepping away from a full-time job, for many people, work is still their primary identity, according to an expert quoted in the article who expects to see more people doing the same thing. “It’s an important part of how they define themselves, and they don’t want to totally give it up,” the expert said. “But they want to create their own hours and have time for other things that matter to them." --The New York Times
Clients who recently retired or are getting close to retirement are poised to face the sequence-of-return risk as bear market conditions are very likely this year, according to MarketWatch. Such risk refers to tapping retirement funds amid a market downturn, making it difficult for retirees to recoup investment losses and subsequently boosting the odds of outliving their nest egg. Preretirees and retirees alike are advised to take steps to curb the risk and ensure they will have a nest egg to last their lifetime. One possible suggestion is to lower the percentage of their retiremetn savings in stocks, according to the article. Instead of the traditional exposure of 60%, they may consider a lower level during the first 10 years, if possible. --MarketWatch
Many millennials think their retirement will look different from their parents as they need to face hefty student debt, higher housing prices and slow wage increases, according to a survey by staffing firm Manpower Group. More than 30% of the participants said they would continue working into their 70s while about one in eight claimed they would have to continue until death, the survey found. --CNBC
