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

Asset allocation advice for older retirees

An 80-year-old client will be better off keeping 70% of her investment portfolio in stocks and not changing her asset allocation if her Social Security benefits and pension payments are enough to cover her needs, according to this article on Kiplinger. Although she has a few years to live, taking on considerable risks to get better returns may still be appropriate if she intends to leave her investments to her children, who have a long life ahead of them. –Kiplinger

Can robots close the retirement savings gap?

More retirement investors are relying on robo-advisers for portfolio allocation advice as these online tools charge lower fees compared with financial advisors, according to this article on CNBC. However, these robo-advisers are yet untested during bear market conditions, experts say. As such, clients will still have to depend on human advisors for guidance when the markets are volatile, said Alpha Architect CEO Wesley Gray, adding that "[t]he robos make good advisors better and will cause the bad ones to be fired." –CNBC

Can a high-dividend stock outclass an annuity?

Investing in annuity could lead to about 3.6% in real rate of return on investment over the entire period of the contract, according to this article on MarketWatch. This is way lower than the annual dividend payments from by Proctor & Gamble, which increase by more than 7%. Those who are considering buying an annuity to guarantee income in retirement are advised to weigh their options before giving up control over their investment money. –MarketWatch

The average American's Medicare drug plan costs: Do your clients pay too much?

Medicare beneficiaries have to brace for an increase in costs as an Avalere study has found that the annual premiums for Part D will climb by more than 6% to $496 next year, according to this article on The Motley Fool. Clients are advised to take advantage of the annual enrollment period to find a plan that offers the best coverage for them. A Medicare Advantage plan is another option that beneficiaries may consider as this plan covers similar basic services as the original Medicare offers as well as prescription drugs. Premium for this plan is likely to drop 1% to $391 in 2016, Avalere claims. –The Motley Fool

Social Security Q&A: Do early spousal benefits mean reduced retirement benefits?

A client is entitled to a divorcee spousal benefit on his ex-spouse's record if he remarries only after he turns 60, according to this article on Forbes. He is eligible for divorcee widower benefits once his former wife dies. He will be deemed applying for his own retirement benefit once he applies for a spousal benefit at age 62. –Forbes

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