Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
The Czech Republic, Portugal, Slovenia, and Canada are among the top 10 destinations for seniors looking for a peaceful and safe retirement, according to an article in CNBC. Also on the list are Austria, New Zealand, Singapore, Denmark, Japan and Iceland. The list is based on Global Peace Index from the Institute for Economics and Peace.
Workers in their 20s should take advantage of their 401(k) plans and contribute enough to get the employer’s match, according to an article in Yahoo Finance. They should ramp their contributions when they reach their 30s, consider saving in other tax-advantaged accounts such as IRAs and 529 plans, as well as minimize spending. Those who are in their 40s should max out their 401(k) contributions, fund a health savings account and focus on investments to boost their returns.
Increasing payroll taxes, reducing retirement benefits and raising eligibility date could help address Social Security’s financial woes, but these steps won’t fix the program for the long term, writes Morningstar’s John Rekenthaler. Lawmakers need to decide whether the program should serve as group or individual insurance, the expert explains. “The debate ... is far from settled,” he writes. “What does seem evident, though, is that the discussion about Social Security’s purpose be made explicit, rather than implicitly conducted through benefits’ formulae.”
Older investors are advised to review their exposure to stocks before retiring, an analyst in The Wall Street Journal writes. That’s because they would expect the same level of returns to continue in the golden years, but their investment income could drop once the stock market slows down, the expert explains. “All of this means investors on the verge of retirement should contemplate having no more than 60% stock exposure and might prefer less.”
