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

More older Americans are being buried by housing debt

More seniors are using their retirement income to pay down their house debt, making them vulnerable to financial trouble once they run out of savings or suffer from an illness, according to this article from The Associated Press. "It's a big problem coming off the housing bubble. A growing number of seniors are struggling with what to do about their home and their mortgage and their retirement," an expert says. –The New York Times


Why that ‘guarantee’ on your client's annuity might be a red flag

The guaranteed living benefits, also known as income riders that are attached to variable and indexed annuities can serve as a red flag for possible issues about the financial products in the future, according to this article on MarketWatch. It is because insurance carriers that offer these annuities need to use more derivative products to curb the possible risks posed by GLBs, according to a report. Derivatives are products that are responsible for the recent bank crisis. –MarketWatch

More people feel like they might actually have enough money in retirement

A study by Spectrem Group found that more retirement savers are confident that their nest egg will be enough to give them a comfortable lifestyle through the golden years, according to this article in The Washington Post. The boost in confidence can be attributed to favorable trends, such drop in unemployment rate, an improving economy and rising stock markets, says Spectrem Group President George Walper. Also many workers are also experiencing an increase in their 401(k) balances, Walper adds. –The Washington Post

Playing with fire on the retirement age

Raising the retirement age as part of Social Security reform is a wrong move since many workers opt to retire early because of circumstances beyond their control, according to this article on MSNBC. "Reducing their retirement income and throwing them off medical insurance will create a new cohort of impoverished elderly, reversing the tangible gains in reducing old age poverty made since the Great Depression,” an economist says. –MSNBC

Social Security Q&A: What survivor benefits are there for children and a spouse?

A wife with a disabled son and a minor daughter can expect bigger Social Security benefits on her spouse's record in case the husband dies, according to this article on Forbes. This is because that the husband's retirement benefits will no longer be charged to the maximum, increasing the amount of benefits the family will receive. The family benefit maximum is between 150% and 187% of her husband’s primary insurance amount. –Forbes

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