Our daily roundup of retirement news your clients may be thinking about.
Retirees who consider relocating or renting a house need to make a number of considerations before making a decision, according to this Q&A article from the Washington Post. For example, they should determine whether they are physically ready for the task, as moving can be stressful for people of advanced age. “If a couple is in their 60s but not too healthy, their decision on moving and whether they buy or rent, might be quite different from a couple in their 80s who are in great health and very active.”
More retirees are considering going back to the labor force and companies can lure them and take advantage of their professional expertise by offering them greater flexibility, writes an expert for Forbes. “Consider necessary, reasonable changes like adjusting benefits that reflect an aging worker’s priorities and interests,” notes the expert. “Examples are deferred retirement option plans, which allow an employee to work beyond the plan’s age of retirement without foregoing their pension benefits, as well as either terminating and then rehiring the employee in a contractor capacity.”
A report from the Stanford Center on Longevity shows that baby boomers are less prepared for retirement than those who came before them, according to this article on CNBC. Boomers have saved less, incurred greater debt and are likely to face bigger expenses that members of the previous generations, states the report. "Boomers who run out of funds towards the end of life will either fall back on children, who by then will be in their 50s and 60s, or the social safety network," says a researcher with Stanford.
Clients are advised to take advantage of the increase in contribution limits to 401(k)s and IRAs next year to boost their retirement prospects, according to article from Kiplinger. Workers are entitled to a tax deduction for their traditional IRA contributions if their income is below $64,000, with the tax break phasing out until their earnings hit $74,000. Couples can also deduct full contribution if only one spouse is covered by a plan and their combined income does not exceed $193,000.
