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

Millennials want big Social Security changes. Will they get them?
More than 50% of younger workers who responded to a survey think Social Security is unlikely to exist by the time they retire. As such, these Millennials propose that the government put their Social Security payroll taxes in private accounts and allow them to invest the money for better returns. The proposal is unlikely to gain government approval given current political climate; hence Millennials are advised to hold private investing accounts while also paying Social Security payroll taxes.  --Motley Fool

The American dream and your retirement
For many people, living the "American dream," which includes a comfortable retirement, is more difficult to achieve now than before, according to MarketWatch. The country lost many industries that provided low-skilled workers in the past the opportunity to live the dream, including the chance to secure their retirement. Despite the bleak picture, younger workers appear to narrow the gap in retirement wealth as they start saving for retirement earlier than older people.  --MarketWatch

The Social Security earnings test is not a tax
Contrary to what most clients think, the earnings test is not a tax, according to Forbes. Viewing the earnings test as a tax burden can be a problem, as people tend to lower their labor supply, a move that could lead to economic effects. Clients would think the net financial returns they would get from working could be much lower compared with what they actually receive during their lifetime.  --Forbes

Tips on managing health-care costs in retirement
As health issues pose a major challenge for retirees, knowing how to deal with Medicare, supplemental insurance plan, prescription drugs, and other factors is necessary to properly manage the costs, according to Morningstar. The article features retirees who shared how their health insurance plan reduced the health-care costs and managed unexpected expenses for their medical needs. Some retirees also described their retirement health-management plan, which emphasized diet and exercise to keep them healthy.--Morningstar

How filing separately can save on taxes
Filing separate income tax can be a good strategy for retired couples if combining their income will put them in a higher tax bracket, according to MarketWatch. Clients who move their 401(k) money to an IRA are also entitled to take advantage of the net unrealized appreciation of their employer's stock if they don't get distributions, transfer out, or roll over. A client retiring at 62 will receive 75% of her normal retirement benefit or 35% of her husband's normal benefit if he files for and suspends his benefit at full retirement age of 66.  --MarketWatch

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