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

IRS inaction affects pension plans in 2016

The Internal Revenue Service has not yet adopted the updated assumptions on American's average life span, allowing companies with defined-benefit pension plans to incur at least $18 billion in savings next year, according to Moody’s Investors Service. The agency is still reviewing these new assumptions issued by the Society of Actuaries in 2014, the ratings firm said. –The Wall Street Journal

For retirees, the death of the 4% rule has been greatly exaggerated

While critics dismiss the 4% withdrawal rule as ineffective in ensuring retirees won't outlive their nest egg, the fact is that the rule is developed based on the worst market scenarios, according to this article on MarketWatch. Data show that the bear market conditions in 2000 and 2008 were not enough to invalidate the 4% withdrawal rule, as retirees who stuck to the rule came out just fine from the downturns. –MarketWatch

Cautionary tales for baby boomers without enough money for retirement

Many baby boomers are living longer than expected and facing the risk of outliving their nest egg because of hefty health care costs, the disappearance of pensions, and uncertainty of 401(k) accounts, according to this article in Los Angeles Times. Some retirees share their worries about running out of money as they see their living costs and other incidental expenses deplete their retirement savings gradually. –Los Angeles Times

Social Security Q&A: How should we file with kids and a large age gap?

A client who is 23 years younger than her husband may be entitled to child-in-care spousal benefits when he turns 67 if their children are under 18, according to this article on Forbes. The husband needs to file for and suspend his retirement benefits for the wife to claim the spousal benefits. Their children also will be eligible to collect child benefits on their father's record. –Forbes

A new way to make your money last in retirement

Retirement investors can expect their 401(k) plan and IRA to cover their needs throughout the golden years by having Qualified Longevity Annuity Contract in these accounts, according to a study by the Employee Benefit Research Institute. Holding a QLAC in these accounts can be a good option for clients who don't expect to receive adequate retirement income from Social Security and pension payments but those who think their benefits and pension can cover their needs may not find such an option viable. –Time Money

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