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

Older women 80% more likely than men to be impoverished

Women are 80% more likely to end up poor when they reach the age of 65, according to a report from the National Institute on Retirement Security. The report states that more women aged 65 and above (9%) are living at or below the poverty line compared with men (5%), with many more female seniors experiencing living woes. “Women have complicated math problems to solve for,” said Kim Mustin of BNY Mellon Investment Management. –MarketWatch

Why this crucial retirement plan investment is falling short

A survey by Financial Engines found that a majority of investors with target-date funds are misusing these funds, according to Money. While 25% of these investors opt to hold all or nearly all of their target-date fund investments in the long term, nearly two-thirds scale back on these funds while some investors leave all of their holdings as they grow, a move that could be costly, the survey found. A “partial target-date fund approach” means their annual returns could be 2.1% lower than what they would earn if they remain wholly invested, according to Financial Engines. –Money

Study: Medicare Advantage ratings proving to be boon to insurers, patients

Many Medicare plans have stepped up their services by offering more preventive care and subsequently improved their ratings, according to USA Today. The trend is benefitting Medicare beneficiaries. “More plans are providing better care. To us, the incentives created from the bonus system are leading to quality improvement,” says Stacy Sanders of advocacy group Medicare Rights Center. –USA Today

How does the line of credit for a reverse mortgage work?

Understanding how the mortgage’s effective rate is applied to the principal limit will help retirees seeking reverse to appreciate the value of having a line of credit as early as they can, writes Wade Pfau, professor at The American College and principal of McLean Asset Management. "The loan balance and line of credit and any set-aside add up to equal the principal limit. Interest and insurance premiums are charged on the loan balance, but not on set-asides or the line of credit," Pfau writes. –Forbes

Are you a retirement "have" or a "have not"?

Many people make a lot of mistakes that affect their retirement prospects and these errors are made before and after they retire, according to CBS Moneywatch. Although many of them are still years ahead of retirement, they either fail to save or don't save enough for their golden years. Many people who are already in retirement may have not created a plan on how to tap their retirement savings to ensure they won't outlive their nest egg. –CBS Moneywatch

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