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

Common mistake that hurts clients' retirement savings
Many investors are improperly using target-date funds, initially holding a portion of their portfolios in these funds but then adding more money in the future to other types of accounts. This is liable to throw off the asset allocation benefits offered by the target-date funds and cause the client to underperform those who keep the majority of their assets in the target-date strategy. Although target date funds are designed for long-term investing, this type of asset-mix shift mitigates the "set it and forget it" advantage of these funds, according to this article in Fortune. One market observer quoted in the article said it's hard for many people to overcome the aversion of having all their eggs in one basket. -- Fortune

What Social Security checks will look like if cuts are made
Social Security taxes can pay for 75% of the benefits if the program's reserves run out by 2037, according to website Motley Fool. This means the Social Security benefit would decrease to an average of $974 monthly or $11,700 annually. Future retirees will need to adjust their withdrawal rate and decrease their spending to make sure they won't outlive their savings. -- Motley Fool

8 surprising facts about retirement
Some things may come as a surprise to retirees, so clients are advised to learn them and account for them in their retirement plans, according to Kiplinger. For example, Social Security retirement benefits could be subject to federal tax and retirees are entitled to many tax benefits. Future retirees also have to know that all their health costs will not be covered by Medicare and should make the most of senior discounts and take the required minimum distribution from their retirement accounts.-- Kiplinger

Are nondeductible IRAs suitable for the long haul?
While some IRA investors make nondeductible contributions to make a "backdoor" Roth conversion and avoid a tax bite, there is a proposal that seeks to end the practice, according to Morningstar. While the benefits of nondeductible IRA contributions could offset the drawbacks, only high-income investors who have maxed out their contributions to other tax-advantaged retirement accounts would gain from such a move. Those who can still make deductible contribution or a Roth IRA contribution should defer contributing nondeductible money, since tax benefits are greater with deductible than nondeductible contributions.  -- Morningstar

Will Social Security be there for your clients?
For financial advisors, future retirees can still expect to receive Social Security retirement benefits although the program faces financial troubles, according to Money. However, retirees can expect changes, such as the size of benefits, the type of benefits and the retirement age.  -- Money

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