Our daily roundup of retirement news your clients may be thinking about.
Data show that many women are likely to be single at some point in retirement, so female clients should account for this possibility when planning for their golden years, according to this article on Yahoo Finance. They are advised to double check their beneficiary information and update legal documents regularly, go with their spouses to meet their financial planners, and create a plan for long-term care. They should also take advantage of Social Security spousal benefits, create sources of guaranteed retirement income, and plan for a longer retirement.
While a study shows that two-thirds of retirees who started collecting Social Security benefits at age 62 will not maintain their lifestyle through the golden years, many others claim that they made the right decision to file for retirement benefits at that age, according to this article on Forbes. In one example, a retiree who made the same decision claimed he may have zero savings in retirement accounts but has six sources of income, including Social Security and pension. He also has a part-time job in a retail chain, gets contractual assignments that pay well, and receives rental income from two apartments he owns.
For most clients, delaying Social Security retirement benefits until the age of 70 is a smart decision, as it will result in bigger monthly paychecks, according to this article on Motley Fool. Claiming retirement benefits at age 62 may also be a wise move for some people, as Social Security is designed in such a way that people get the same amount of inflation-adjusted benefits throughout their lifetime regardless of what age that they start collecting the benefits. Men may be better off starting their benefits at age 68 to get the best possible returns.
A study has found that most seniors are more concerned about outliving their nest egg than death, as many people have not saved enough to secure retirement, according to this article on Fox Business. Clients who are facing the same concern can improve their retirement prospects by maxing out their retirement plan contributions and taking advantage of catch-up contributions to boost their savings. They should also consider delaying retirement and working longer to have more time to prepare for the golden years.
Increased longevity means that more people will need long-term care insurance, as data indicate that the percentage of seniors spending at least a night in a nursing facility or in need of in-home health care increased from 40% to 50% between 2000 and 2010, according to this article on Morningstar. However, the data also show that the average length of stay has decreased. Long-term care insurance premiums have increased faster than inflation, with the cost of new policy increasing by up to 9% annually. Buying a long-term care insurance is a personal decision based on several factors, such as the clients' health history and asset level.
