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

How to double your target-date retirement fund's return in a single move

Target-date retirement funds are generally safe investments due to their conservative approach of relying heavily on large-cap blend funds. However, that also means they can miss high return potential offered by other productive asset classes, according to this article on MarketWatch. Clients who want bigger investment returns can supplement their target-date funds by directing 40% of their assets to small-cap value stocks. With such asset allocation, clients could have bigger returns compared with investing in target fund only or taking 25% of their investments to small-cap value. –MarketWatch

Why you will need less money than you think for retirement

A survey shows that retirees spend 66% of their pre-retirement income and yet live a happy and comfortable life, but people can have a happy and fulfilling life in retirement with much less than that, writes Jonathan Clements, author of the “Jonathan Clements Money Guide 2015.” It is because retirees usually no longer have children at home, which could boost their expenses, and their mortgage is typically paid off by the time they reach retirement age, Clements says. People will also need much less in retirement if they contribute at least 20% of their income and take advantage of their employer match contribution in their 401(k) plans, he adds. –The Wall Street Journal

How much should you contribute to your 401(k), and how should you invest it?

While workers can make minimum 401(k) contributions that will enable them to take advantage of their employer match contribution, contributing more than the minimum may be needed to ensure they will have enough savings in retirement, according to this article on The Motley Fool. Workers are advised to invest their 401(k) funds heavily in U.S. stocks, which are likely to outperform other asset classes in the long term. They may allocate the rest of their funds in bonds and fixed-income investments and foreign stocks. –The Motley Fool

The pros and cons of hiring a financial advisor

Retirement investors who want to build a low-cost portfolio may not need to seek professional advice if they understand the concept of asset allocation and are capable of picking investments on their own, according to Robert Stammers, the CFA Institute's director of investor education. Hiring a financial adviser may not be needed if clients invest through their 401(k) plans, most of which offer low-cost index funds and target date funds. Taking advantage of investment advice offered by retirement plans led to higher returns, according to a survey by Voya Financial. –Time Money

Social Security Q&A: Why do my benefit estimates decline after retiring early?

Clients who retired earlier than their retirement age should not expect their Social Security annual benefit estimate to decrease until they turn 70, according to this article on Forbes. It is because Social Security takes the assumption of zero future economy-wide wage growth and no inflation in the coming years. They can determine their retirement benefits at age 70 by using the Security maximization program if they have their earnings record. –Forbes

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