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

5 steps clients should take within 10 years of retirement
Clients who are 10 years within their retirement need to determine the kind of lifestyle they want to have and the costs that go with it, an expert says. Other experts advise clients who are approaching retirement to pay off their credit card debt before they retire and try out their budget against the income they expect to have in retirement. They also need to decide on what age they should start collecting Social Security benefits and on how and when they should tap their retirement savings, such as their 401(k) plans and IRAs, other experts say.   --The Motley Fool

It's time to raise IRA contribution limits
Lawmakers are considering proposals to improve workers' access to 401(k) retirement savings plan, but these proposals will not work unless limits to IRA contributions are raised by implementing a unified contribution limit, writes Scott Cooley, Morningstar's director of policy research. "From the perspective of the government, it is more important that people save an adequate amount for retirement, rather than that they save in a particular type of tax-favored vehicle," Cooley writes.--Morningstar

New math for retirees and the 4% withdrawal rule
The 4% withdrawal rule had been a good strategy for retirees in the past when tapping their nest egg, but it may no longer be effective so they need to consider a different approach, according to this article in The New York Times.  People are in "unchartered waters" because of very low interest rates and highly valued stock markets, so they aren't sure if the rule will still work, said Wade Pfau of the American College of Financial Services. Seeking professional advice is a smart move for clients to ensure they won't run out of money in retirement, another expert says.  --The New York Times

What older workers must know about contributing to, withdrawing from retirement savings
Taking required minimum distributions from 401(k) plans and traditional IRAs is mandatory for retirees who have reached the age of 70½ whether they are still working or not, according to this article on Kiplinger. Those who are employed are not required to take RMDs from their employer-sponsored 401(k) plan. Workers aged 70½ and above are also not allowed to contribute to their employer's 401(k) plan but can make Roth IRA contributions provided they receive a working income.  --Kiplinger

They’re juggling a mortgage and college savings. Can they still retire early?
A couple who has built a substantial nest egg and wants to retire early intends to pay off their home mortgage before retirement and save in 529 plans and other accounts for their son's college education, so financial advisers offer advice on how they can take an early retirement while achieving these financial goals, according to this article in The Washington Post. The husband may consider deferring his Social Security benefits if he retires at 62 and tap his savings to augment his pension in paying the bills, one of the advisors says. The couple should also focus on how they can preserve their investments, such as reducing their assets in stocks, another adviser says.  --The Washington Post

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