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

More Retirement Plans Embrace Auto-Enrollment
Plan-participation rates are increasing as more employees are automatically enrolled, according to this article in the Wall Street Journal. Aside from newly hired employees, plan sponsors are now also automatically enrolling eligible employees who are not yet participating in any retirement plans. People are also seeing more diverse and better managed retirement plans, as well as plan sponsors that make generous contributions and matches.   --The Wall Street Journal 

Dos and Don'ts for Your Final Working Year Before Retiring
Clients expecting to retire soon should estimate their expected monthly budget and cash flow from all their retirement accounts, such as 401(k) or IRA, and make careful withdrawals to avoid entering a higher tax bracket, according to this Daily Finance article. Pre-retirees should also remember not to be too early in filing for Social Security to increase the monthly benefits they may receive. The article also advises pre-retirees to plan in advance for a new social outlet and meaningful activities they can do to ease the transition to retirement.  --Daily Finance

Need to Work in Retirement? Think small
People planning to work beyond the usual retirement age should consider micro-enterprises, according to MorningStar. Retirees usually worry that entrepreneurship would drain capital but micro-enterprises can generate supplemental income and delay Social Security filing without a high capital risk. Micro-enterprises, such as freelance work, can even be tested out while one is still employed.  --MorningStar

Don't Default On Student Loans, Think About Retirement Instead
Clients should not let student loans stop them from saving for their retirement fund, this Forbes article advises. Clients may choose to save most of their paycheck into a retirement account and minimally pay off their student loans or do the opposite and focus on paying of their loans while making small contributions for their retirement. Before choosing a strategy to follow, it is important to know whether they took high-interest rate loans and if their employer matches their retirement contributions, as well as to always fully match contributions if they do.   --Forbes

Are Social Security Benefits Taxable?
Clients should remember that Social Security benefits are taxable, although there are several caveats to remember. If Social Security benefits are their only source of income and their total is below $25,000, then their benefits will not be taxed at all. But if they have additional retirement income besides Social Security coming from a salary, pensions or 401(k) plans, they will likely be over the income limits and can expect that up to 85% of their Social Security benefits will be taxable. Also, clients are advised to pay benefits taxes gradually during the year rather making one big payment.  --Time



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