Our daily roundup of retirement news your clients may be thinking about.
Raising the retirement age could be more detrimental to blue-collar workers than their white-collar counterparts, writes a Forbes contributor. That's because of the widening gap in retirement ages between these two groups over the years, based on data from the Center for Retirement Research. Compared with college-educated professionals, high school educated workers retire earlier because their jobs are physically demanding and less appealing for aging workers. Blue-collar workers also suffer from poorer health.
Retirees are likely to be more mobile in the future as the automobile companies are racing to offer self-driving vehicles in retirement communities, according to this article on CNBC. "Retirement villages are just the perfect first place we see for autonomous driving," says an industry executive. "We help people who need transportation improvement every single day. It's also a big market. It has tons of people."
More Americans are contemplating financial independence early in their lives and leave the work force for good, according to this article on The Wall Street Journal. Retiring early raises important issues about finances, identity and where to retire. For example, early retirees set aside a big percentage of their salary and reduce their spending, building a solid investment portfolio. They also tend to redefine themselves, replacing their careers with meaningful activities, such as volunteer work and raising funds for charity causes.
Retiree advocates warn that the 2.8% increase in Social Security retirement benefits next year will not be enough to offset the rising expenses for retirees, according to this article on Fox Business. “The cost of living increase may not adequately cover their expenses that rise faster than inflation including health, prescription drug, utility and housing costs,” AARP CEO Jo Ann Jenkins said in a statement.
