Retirement readiness

“Having retirement assets in both traditional and Roth accounts can help clients hedge their tax bets for retirement,” an expert says.

Mutual funds and ETFs are often created with lopsided or unequal allocations toward certain sectors of the economy, experts warn.

Aside from income taxes, retirees will also pay consumer taxes and may face a 3.8% Medicare surtax.

Pre-retirees may consider funding a Roth account to take advantage of tax-free compounding and tax-exempt withdrawals in retirement, an expert writes.

Clients can void overspending by seeking out sales and discounts to lower their food and entertainment costs.

While it’s recommended they have at least three sources when they retire, just 6.8% of savers have done so, according to a report.

"Since no one has a crystal ball to predict what will happen, I advise saving money on both sides of the tax fence," an expert says.

While retirement readiness among Americans has improved in general, Gen Xers are struggling with housing, college and medical costs, a survey finds.

After developing a plan to cover their bills and emergency expenses, clients in a new marriage are advised to start working on their long-term goals.

To reduce the risk of retiring early, seniors are advised to take on a part-time job or downsize to reduce expenses.

Retirees may benefit from moving money to various locations that offer better savings rates and returns.

Seniors can claim tax deductions for payments made on their homes, allowing them to reduce their tax burden when they retire.

More clients are opting to work after they retire "to stay active and contribute professionally while also supplementing their income.”

“By and large, many simply have not yet saved enough to retire comfortably.”

Sixty percent of advisors cited estimating health care costs as one of the biggest headaches when helping retirees plan for the future.

Clients should understand Medicare, Social Security and 401(k) changes that will impact on their retirement savings and income.

The change would affect seniors who converted traditional accounts to Roth and paid taxes for the benefit of their heirs.

Seniors hoping to begin retirement next year are advised to review their risk exposure, pay down their debt and save for additional health care costs.