The bear market can derail clients’ retirement ... if they’re not careful

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Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about

The bear market can derail your client’s retirement if they’re not careful
Clients are advised to take a few measures to prevent the bear market from hurting their retirement prospects, according to this article in Barron's. Retirees who are tapping their retirement portfolios for income are advised to consider reducing their withdrawal rates to 3%, according to the article. Pre-retirees who cannot afford to reduce their withdrawal rates should delay Social Security to boost their monthly retirement benefits and consider annuities to create a guaranteed source of income in retirement. “A lot of people have an extreme bias versus annuities. But for the right person, they can be the perfect fit," a financial planner says.

3 steps to retiring comfortably on Social Security alone
It is possible for seniors to live off solely of Social Security benefits in retirement, but they need to make a few moves, according to this article in Motley Fool. For starters, retirees are advised to consider relocating to a place with lower cost of living and deferring their retirement benefits past their full retirement age. They should also maximize Social Security by taking advantage of all types of benefits available to them, including spousal benefits, divorce benefits and survivor benefits.

Your clients 401(k) may do a bit better this time
Retirement investors can expect their 401(k)s, particularly their target-date funds, to offer more protection and perform better during the market correction than the 2008 downturn, according to experts in this article from The Wall Street Journal. That's because many TDFs have enhanced their asset-allocation models and approaches to risk management since the 2008 correction. Morningstar data show stock allocation for portfolios closest to retirement has dropped to an average of 45.3% from 50% in 2009.

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Will spousal benefits increase if they work past their FRA?
Seniors might see an increase in their significant others’ Social Security benefits if they opt to continue working past their full retirement age, according to this article in Forbes. That's because the additional earnings could boost clients' primary insurance, while their significant others' spousal benefits will be 50% of their PIA. However, your client's spouse can only apply for a spousal benefit on their record once they start collecting their own retirement benefit.

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Markets and indexes Social Security Retirement benefits 401(k) Portfolio diversity Retirement planning Retirement withdrawals Retirement income Annuities Debt