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

Coping without a COLA to sweeten Social Security

Cash-strapped retirees will need to find ways to cope as their Social Security benefits are not expected to increase next year, according to this article on CBS Moneywatch. One way to make ends meet is to reduce their housing costs by downsizing, while they can shop around for health care coverage with lower premiums during the Medicare open enrollment period. Retirees may also consider annuitizing a portion of their savings, taking a reverse mortgage and looking for a job again. --CBS Moneywatch

Making 401(k) enrollment and escalation automatic

Despite the passage of the Pension Protection Act of 2006, which encourages automatic enrollment and escalation in the 401(k) default contribution rates, many plans have yet to adopt the auto-provisions, writes Alicia H. Munnell, director of Boston College's Center for Retirement Research. Making these automatic provisions mandatory will make a difference in the retirement prospects of many Americans, Munnell says. "It’s a much tougher fix if only 18%, as opposed to 50%, of plans currently have such a provision." --MarketWatch

4 retirement risks that can be reduced

Inflation, investment losses, health problems and outliving one's life savings are risks that threaten every client's retirement, but there are ways to mitigate them, according to this article in U.S. News & World Report. For example, retirees may allocate their savings in investments that keep up with inflation and boost their allocation in more conservative assets. They are also advised to engage in healthy lifestyle to ward off diseases and to be flexible with their spending to avoid draining their retirement funds. --Yahoo Finance

The best inflation hedges for retirees

As Social Security benefits will have no cost-of-living adjustments next year because of lack of inflation, retirees' investment portfolio should include inflation hedges, according to this article on Morningstar. This will help secure the purchasing power of retirees as they depend on withdrawals and income distributions from their portfolio to cover their needs. Know some of the investments that offer inflation protection for retirees. --Morningstar

How much clients can contribute to retirement plans in 2016

The contribution limits to 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan will stay the same in 2016 at $18,000 since the rise in the cost-of-living index failed to reach the thresholds for adjustment, according to this article on Kiplinger. The catch-up contribution for those who are aged 50 and older will remain unchanged at $6,000. For IRA investors, the maximum contribution next year also will be the same at $5,500, while income limits for Roth IRA investors will increase by $1,000. --Kiplinger

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