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Number of Fidelity 401(k) millionaires hits record high

Our daily roundup of retirement news your clients may be thinking about.

Number of Fidelity 401(k) millionaires hits record high
A study by Fidelity Investments has found that the number of Fidelity-managed 401(k) plans with at least $1 million in balances increased to 168,000 in the second quarter from 118,000 recorded in the same period last year, according to this article from USA Today. Despite the increase, the figure still represents a small percentage of the 16.1 million accounts that the company manages. "Individuals are increasing their savings rates, they're taking advantage of their company match and they're keeping a healthy percentage of stocks in their account," says a Fidelity executive.

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Why live alone in retirement? Form a pod instead
Clients who have not saved enough for retirement have the option of living with friends who are willing to share the expenses, writes an expert for Kiplinger. Called the pod, such an arrangement will help them reduce their cost of living, explains the expert. "If you own your home, most of the associated costs — taxes, insurance and upkeep — are fixed... For example, if you share your home with three friends, your $10,000 property tax bill suddenly drops to $2,500 for each of you."

The best way to save for retirement may be to not think about it
Recent studies suggest that although many Americans have boosted their retirement savings, many people remain worried about their future prospects, according to this article on MarketWatch. The concern is felt across all types of clients, particularly millennials. “They have a lot on their plate,” says an analyst with Bankrate.com. “Even though the economy is doing well, a lot of people are having a hard time making ends meet.”

Claiming your Social Security at 62? You might not regret it
A study by U.S. researchers has found that few retirees who filed for Social Security benefits early regret the decision, according to this article on CNBC. "This doesn't mean they thought it was the healthiest decision financially," says one of the researchers from the Center for Economic and Social Research at the University of Southern California. "It just means that it was the best decision at the time for them — that they couldn't have done things any differently."

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