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

Why working past 65 can be doubly rewarding
Seniors should continue working past the retirement age, as such a move can improve their financial prospects, according to this article on Kiplinger. Adding five years to their working years will enable them to retire and replace their pre-retirement income by up to 90% instead of 60% if they worked for 40 years and retire at 65. Generating cash flow from work will also enable them to continue contributing to their 401(k) plans and to delay Social Security and distributions from their retirement accounts.

Social Security checks being printed at the U.S. Treasury Philadelphia Finance Center in Philadelphia. (Bloomberg)

What the Tax Cuts and Jobs Act means for retirement benefits
Under the new tax reform law, retirement savers are not allowed to undo Roth conversions beginning this year, meaning such an option can no longer be used as a saving strategy, according to this article on finance website Morningstar. An explanatory statement of the law states that the "backdoor Roth contribution" is a legal strategy. For those who decide to close their IRAs, the loss they will have realized may not be deductible under the new law. Qualified charitable distributions have become more attractive to retirees who are 70 1/2 and older because of the tax benefit.

Make one change to your retirement account now, tax experts say
Retirement savers will be better off converting some of their traditional IRA assets into a Roth account this year, according to this article from Money. That's because the individual income tax rates have been reduced under the new tax reform law. These tax changes mean that the Roth conversion will be subject to lower tax rates and trigger a lower tax bill.

4 reasons Americans' 401(k) balances are too small
Data from the Center for Retirement Research show that the low 401(k) balances can be attributed to fewer American workers contributing to such a plan, according to this article on personal finance website Motley Fool. Another reason for low 401(k) balances is that many workers, especially those who were signed up automatically into the plan, are making lower contributions. High fees and leakages are also to blame for the low 401(k) balances.

Why this could be one of the best ways to invest in America’s future
Helping younger workers prepare for retirement could be the best way for the U.S. government to secure the country's future, writes an expert. "The greatest success and gains in strengthening retirement security will not come from helping workers who are already close to retirement age," writes the expert. "It will come from helping the youngest workers understand the importance of starting to save as early as possible, and making saving easier."

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