Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
Some workers facing retirement do not have enough savings in their 401(k) plans because the system itself is relatively new, according to a report cited in this CNBC article. Many dip into their 401(k) savings prematurely and end up getting hit by investment and other fees, the report says. To make the most of their 401(k)s, workers should start funding their accounts as early as possible, opt for low-cost investments and avoid taking early withdrawals.
Clients who want to determine whether they are on track for retirement may opt for a means-based approach that allows them to use percentages of their income, according to this Forbes article. Another strategy is to gauge their retirement readiness based on their preferred lifestyle or set of goals.
This article in The Wall Street Journal names eight podcasts offering useful information for seniors getting ready for retirement. “These eight podcasts help you prepare for the financial, emotional and mental tolls of retirement — it’s not all golf courses and Caribbean cruises — whether you’re moving on from an illustrious career or a more workaday professional existence,” the article says.
Clients should find ways to turn their retirement portfolios into lifetime income streams to avoid outliving their savings, according to this article from Kiplinger. Clients should minimize their budgets, develop a sustainable withdrawal strategy, protect their portfolios from inflation, market volatility and other risks and plan for healthcare expenses. They should also consider products that offer guaranteed income, reverse home mortgages and strategies to minimize taxes on their retirement income.
