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

These 5 moves will shrink your Social Security benefits
Clients can expect reduced Social Security retirement benefits if they post fewer than 35 working years, according to this article on personal finance website Motley Fool. Their benefits would also be reduced if they file before reaching full retirement age and their home state imposes tax on their benefits. Seniors who fail to correct errors in their earnings statements can see lower benefits, while those who fail to pay taxes or student loans can also expect their benefits garnished by the government to settle their liability.

Bloomberg News


How student loans impede people from saving for retirement
Student loan debt makes it very difficult for many young workers to save for retirement, but this does not mean that they can't build their nest egg while paying off the debt, according to this article on CNBC. To do this, they should start saving as soon as they can, use a retirement savings account such as a 401(k) and scale back their lifestyle to free more money to save. Clients should, however, put student loan debt ahead of retirement saving if they are facing a very tight budget. "To really successfully save for retirement you need to get your current finances in order. Otherwise, there will be a strong likelihood you will end up dipping into the retirement savings to pay off debt," says an expert.

Why the end is coming soon for the biggest tech bubble we’ve ever seen, says Villanova professor
An expert warns that unicorns – those privately-held startups with at least $1 billion in value- may not be a good investment option, according to this article on MarketWatch. That's because clients could be vulnerable to widespread overvaluation, says the expert. “If you intend to invest in a unicorn IPO anytime soon, think twice. And if you haven’t taken a close look at your 401(k) or IRA retirement plan investments, check to see what those mutual funds have been dabbling in.”

How to use a side job to save for retirement
More people are joining the gig economy and getting a side job, and this should give them more reason to save more for retirement, according to this article from U.S. News & World Report. When saving for the golden years, they should make the most of tax-advantaged retirement accounts like a 401(k), a SEP IRA, a solo 401(k) and a traditional or Roth IRA. “I really like the Roth IRA because you can pull money out without paying taxes. I set aside $500 per month, which lets me max out my Roth IRA,” says a side hustler.

Avoiding the 50% penalty on overlooked RMDs
Retirees who failed to take the required minimum distributions from their IRAs or fell short of their RMD withdrawal should rectify the error immediately, according to this article from Kiplinger. By correcting the mistake as soon as they discover it, they can appeal for a 50% waiver of the penalty, which is half of the RMD amount. The IRS has the authority to waive the 50% penalty if the agency found the shortfall to be a result of a reasonable error.