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

Five steps for Gen Xers turning 50
People born between 1965 and 1980 --known as Generation X-- will be the first generation that failed to do as well as their parents on an inflation-adjusted basis, writes Ted Jenkin, co-CEO and founder of oXYGen Financial, in The Wall Street Journal. They face a number of challenges as they get close to retirement age, Jenkin says. As the oldest Gen Xers start turning 50 this year, they are advised to make financial moves to improve their retirement prospects. In a nutshell, the five tips are: 1) Pay off your house; 2) Take the kids off the payroll; 3) Decide which sibling will be the ring leader for issues with parents; 4) Save one-third of every raise and bonus going forward; 5) Take care of your health.  --The Wall Street Journal

The single biggest retirement mistake
Many clients failed to set up a fund for the early years of retirement and instead tap their retirement funds as soon as they retire, which is major mistake, according to an article on Time Money. Although the 4% withdrawal rate is considered safe by experts, many retirees are concerned about outliving their nest eggs. Having a savings account that can cover their needs for the first 10 years of retirement is a way to address this concern.  

--Time Money

For 2015, contribution caps rise for 401(k) plans
Annual contribution limits for retirement plans are set to increase this year, according to an article on CBS Moneywatch. The limit on 401(k), 403(b), and 457 retirement plan contributions has increased to $18,000 this year from $17,500 in 2014, while the contribution limit for Simple IRA plans is raised to $12,500 for people under 50 and $15,500 for those who are 50 and older. The annual limit on IRA contributions remains the same at $5,500 for people under 50 and $6,500 for those who are aged 50 and up. --CBS Moneywatch

Uh oh, Republicans are trying to ‘protect’ Social Security again
House Republicans claim their decision to approve a procedural rule that prevents the reallocation of revenue from the retirement system to the disability program is aimed at protecting Social Security, according to this opinion piece on The New York Times. However, the writer says, the truth is that the reallocation "would put the disability fund on a firm footing while barely denting the retirement fund, for the simple reason that the retirement fund is far bigger than the disability fund." --The New York Times

The retirement of the traditional retirement
More seniors are poised to forgo traditional retirement as a recent survey by Merrill Lynch finds that workers in the age 50 group intends to continue working past their retirement age, according to this article on The Motley Fool. While working through their golden years will help keep them financially secure, most retirees feel that it will boost their well-being and keep them busy, considering the average life span is increasing. Working after retirement could mean a new pursuit, such as starting a business or a less stressful job.  --The Motley Fool

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