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

Medicare is part of the solution to rising health care costs

As politicians call for changes to Medicare 50 years after it was established, lawmakers will be better off looking for the best way to cover the health care needs of the country's aging population, according to this article on Forbes. The U.S. can expect its 65-and-older population to hit 83.7 million by 2050, nearly double the number recorded in 2012 based on data from the U.S. Census Bureau. This means that Medicare will need a higher budget allocation to account for this increase and rising healthcare costs. -- Forbes

It's never too early—or late—for clients to plan their retirement years

Clients are advised to start saving and learn about financial planning while in their 20s, and to have a plan on how to save and deal with other financial obligations when they hit their 30s, according to this article on CNBC. When they reach their 40s, clients should know how to balance their need to save for their golden years and their responsibility to their family. They are advised to maximize their nest eggs and have their goals in place by the time they are in their 50s, and prepare for the transition to retirement when they reach their 60s. -- CNBC

How to fix 3 retirement-savings flaws

Workers are advised to boost their contribution rate to their retirement plans by up to 15% if they have low savings rate, according to this article on Kiplinger. Those who experience extreme investing need to limit their stock investments to 90%, if they are aggressive investors with 30 years ahead, or to 50% if they are conservative and have 10 years or less left. If workers have invested too much company stock, they are advised to reduce these stock investments by, at most, 10% of their portfolio. -- Kiplinger

Did your client apply for Social Security too early? Here are two things they can do about it

Retirees who filed for Social Security retirement benefits early, and have changed their minds, are allowed to withdraw their application and return the payments if they've been receiving the benefits for less than 12 months, according to this article on The Motley Fool. Those who are already past their full retirement age, but haven't turned 70, are allowed to suspend their benefits and resume receiving them with an increased value at a future date. -- The Motley Fool

Here’s the best way for clients in their 20s to invest in a Roth IRA

Young investors who have transferred their Roth 401(k) assets with their previous employer to a Roth IRA should consider long-term investments since time is on their side, says Brad Sullivan, senior vice president of California-based Beverly Hills Wealth Management. This means investing a lot in stocks, which tend to beat more conservative investments and inflation over time, Sullivan says. It is also important that they diversify their portfolio and be comfortable with their asset allocation, says Sullivan. -- Time Money

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