Our daily roundup of retirement news your clients may be thinking about.
Investors age 65 and above experienced the biggest increase in retirement savings compared with those from other age groups as the stock markets soared this year, according to a study by Hearts & Wallets. People in the 65-74 age group saw their retirement assets climb to $3.5 trillion this year from $2.3 trillion last year, the study finds. U.S. households posted a 16% increase in investable assets last year, with total assets valuing $41.2 trillion, the research also finds. Time Money
Sales pitches about annuities can distract retirement savers from making an informed investing decision, writes Stan Haithcock of MarketWatch. Instead of listening to advertisements, seminar presentations and agents, clients are advised to read the annuity contract or policy, Haithcock writes. "There are no surprises, secrets, or hidden gotchas in the contract. Nothing is over hyped or bullet pointed in the policy. There are no hypothetical, theoretical, projected, back-tested, or hopeful return scenarios in the annuity contract." MarketWatch
Clients can boost their retirement savings by making wise housing decisions, according to this article in U.S. News & World Report. Retirees can live on a limited budget if they have paid off their mortgage, which could add substantially to their expenses. They may also consider downsizing or relocating to a place with lower cost of living. A reverse mortgage is also a good strategy for retirees to cover their needs without losing the property, while renting is another viable option if they want to sell their homes to augment their retirement savings. DailyFinance
Doing online research about investing helped a lawyer who was forced to retire early because of an illness to achieve her financial goal. The client's goal was to receive at least $100,000 in annual income without draining her principal, which amounted to $2 million. Know what the retiree learned online about investing and how she used the information to realize her goal, afford two vacations every year, and grow her retirement savings to $3 million. Forbes
A married couple can boost their retirement benefit payments from Social Security if they know how to optimize their spousal benefits, according to this article on Kiplinger. One of them may file for and suspend his retirement benefit until age 70 so the spouse can receive spousal benefit on his record. Another strategy is restricting an application, in which the lower-earning spouse files for her retirement benefit so the higher-earning spouse can claim spousal benefit on her record and defer his own retirement benefit. Kiplinger
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