Seniors are not the most susceptible to financial fraud
Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
Seniors are not more susceptible to scams — younger adults are
Younger adults are more likely to be victims of financial fraud than seniors aged 60 and older, according to a report from the FTC in this article from The Washington Post. However, seniors who fall victim to fraud tend to lose more than their younger counterparts and are usually scammed through phone calls. “This high rate of phone fraud reporting was driven largely by reported calls from government impostors, particularly Social Security Administration impostors,” according to the report.
3 signs clients are on track to retire early
Clients are geared up for early retirement if they are setting aside more money than they should for retirement every month, according to this article in Motley Fool. They are also likely to leave the labor force sooner if they are healthy and have a plan for their medical expenses. Those who don't need to depend solely on Social Security are also on track to take an early retirement.
Should clients relocate to trim taxes in retirement?
There is a lot to consider for seniors planning to move in retirement, according to this article in Kiplinger. Wherever they decide to move, however, they are advised to account for all state and local taxes, including non-tax implications before making a decision. “You have to be really committed to changing your domicile, and it can’t just be done for tax purposes. You really have to cut ties with your home state. It can be a balancing act,” a CPA says.
Would clients take a money-back guarantee from a 401(k)? The answer should be no
Retirement savers stand to lose if their 401(k) plan offers a money-back guarantee, according to a study by the National Bureau of Economic Research in this article in MarketWatch. Many clients don’t realize that these guarantees can be very costly even if they have a longer retirement horizon, says one of the researchers. These guarantees also “get more expensive in times of poor capital markets, or low- or zero-interest rates because the markets aren’t doing the work to help protect against losses.”