Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
As much as 63% of Americans are failing to meet their retirement savings goals, according to a report from TD Ameritrade in this CNBC article. Clients who want to catch up are advised to begin investing in tax-advantaged retirement accounts and automate their contributions. They should also take advantage of their employer’s matching contributions and boost their income to enable them to increase their savings.
Millennials are advised to start saving and investing early for retirement and avoid being discouraged by volatile markets, says an expert in this Fox Business article. It pays to remain calm and stick to a long-term investing plan, the expert says. They should also pay down debt, follow a budget and build an “emergency fund of three to six months of expenses,” after which they can start investing 15% of their earnings for retirement, he adds.
Social capital, human capital, assets and lifestyle factors are among the considerations that seniors should consider to ensure they stay retired without outliving their savings, writes a Forbes contributor. “The tension between having a great early retirement and still being okay if you live to 100 won’t go away,” he says. “If you focus on making lots of smart little decisions on the four areas above, you’re well on your way to rocking retirement.”
Those leaving the workforce before 65 need more cost-effective places to live.
Seniors are advised to build a cash cushion before retiring, as it will enable them to cope with the adjustments in the early years of retirement, says a financial advisor in this Forbes article. “Having some cash on hand will save you from having to draw more than you want from an IRA or 401(k) – which creates more income tax,” says the expert. “It will also save you from having to sell some highly appreciated stocks that you’re not ready to let go of yet, which can also create more taxes.”
