Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
There are many ways for clients to boost savings and secure their retirement, according to an article from Yahoo Finance. To do so, they are advised to start saving early, reduce spending to free more money, oblige themselves to save and sock away at least 10% of their annual earnings. They should also minimize their investment fees, stick to their long-term investing plan, and contribute to a Roth IRA to boost their tax-free income in retirement. Taking on a side hustle can also boost their ability to build their savings and enable them to get tax breaks for retirement contributions.
Most seniors are not ready to retire as they cannot rely on Social Security, pension and personal savings to cover their needs in retirement, an expert writes at MarketWatch. To improve their retirement prospects, the required Social Security savings from both the employer and employee should be increased by doubling the payroll taxes to 24.8%. “Retirement accounts like 401(k)s and IRAs would still be in play, just not as the main source of income,” the expert writes.
Outliving their savings could be the biggest fear that many clients face as they prepare for retirement, according to an expert in this article from TheStreet. To deal with this fear, clients should create a plan, reduce spending and minimize expenses in retirement. “Look for ways to reduce your taxes both before and during retirement,” the expert says. “You might have to move to a tax friendly state."
Seniors are advised to check their savings before they apply for Social Security benefits, according to a Motley Fool article. It is also important that they consider the age they file for the benefits, as it will dictate the amount of benefit payouts. Clients who file before the full retirement age can expect a permanent reduction in benefits and an increase if they delay the benefits.
