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

Social Security checks lower than many Americans expect
Many Americans are overly optimistic that their Social Security benefits alone will be enough to cover their needs in retirement, according to this article from USA Today, which cited a survey from the Nationwide Retirement Institute. This means that clients should review their retirement plans, as many are expecting to collect more than what they really will, and they are very likely to retire and file for benefits earlier than planned, reducing their actual benefit payouts. “There’s a major disconnect between what consumers think their Social Security benefit will be — and cover — compared to reality," says an expert quoted in the story.


One way to create income for life and a guaranteed inheritance for your kids
Seniors who have no need for required minimum distributions from tax-deferred retirement accounts and want to leave the assets to their loved ones are advised to purchase life insurance, writes an expert for Kiplinger. Such coverage could give their heirs an income tax-free inheritance. If they will have a problem making the premium payments, they have the option of buying an annuity inside their IRAs to guarantee income to cover these payments. This strategy could double the inheritance that their loved ones would receive after their passing.

Here's how much families have in retirement savings—and how much they actually need
Studies have found that many American households have not saved enough for retirement, according to this article on CNBC. While the amount of retirement savings that people should have varies among clients based on their lifestyle and spending habits, experts say that they should be saving at least 10% of their income. Fidelity also recommends that clients have retirement savings amounting to 10 times their final salary if they want to retire by the age of 67. The retirement-plan provider also suggests an amount that clients should have saved at a certain age. For example, they should have saved an amount equal to their salary by age 30 or three times their income by age 40.

Here's the easiest way to catch up on retirement savings
A study by the National Bureau of Economic Research has found that if a worker extends his or her career for a few more months before retiring, it will have the same effect as setting aside an extra percentage point of their wage income for over three decades, according to this article from Money. “You aren’t spending down your savings. In most cases, you’re probably continuing to save. And you’re delaying taking Social Security,” says an advisor. “If you look at the cash flow over time it can make a huge difference.”