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

Social Security benefits rising 1.7% for 2015, top tax up 1.3%

The Social Security Administration has announced that 64 million retirees can expect a 1.7% increase in their cost of living next year, with the maximum Social Security tax rising only 1.3%. The uptick in cost of living means the monthly benefit of an average retired worker will jump to $1,328, while an average senior couple's benefit will rise to $2,176, the agency says. A baby boomer who files for Social Security at full retirement age next year will get $2,663 in maximum monthly benefit. – Forbes

Should insurers handle public-pension payouts?

Analysts are split on a proposal by Sen. Orrin Hatch, R-Utah, which would seek the transfer of public pension plans' assets to private insurers, and allow these firms to engage in investing these assets, assume the risk, and pay for the benefits, writes Alicia H. Munnell, director of the Center for Retirement Research at Boston College. The private sector could not adopt the proposal as most public funds are not fully funded, while employees' future benefits cannot be reduced, Munnell says. Another concern about the proposal is the possible increase in costs, as underwriting annuities requires an all-bond portfolio and insurers need to charge high fees to take on risks, the expert adds. – MarketWatch

The procrastination penalty for retirement savers

More than 50% of middle-class people say they intend to boost their retirement savings at a later time to compensate for not saving enough today, according to a survey by Wells Fargo. Deferring plans to build a nest egg can have bad consequences for workers, experts say. For example, a 25-year-old person who sets aside $100 monthly can expect to have more than $225,000 when he files for retirement at 65, while a 40-year-old worker who saves the same amount could only have $75,000 when he retires at 65. – CNBC

3 steps retirement investors must take now to survive this market

Amid the volatility of the stock markets, retirement investors need to review their investing goals and make the necessary adjustments to ensure they will be pleased with their portfolio's performance if the market falls or performs well, according to this article on Time Money. Investors should re-evaluate their tolerance for risks and make changes to their portfolio according to how much risk they could take. Once they are done with this, clients should avoid reacting emotionally to any movements in the market and undo whatever changes made to their portfolios. – Time Money

How to avoid running out of money in retirement

Instead of developing a plan to make sure the nest egg will last, people fail to have clear objectives for their retirement, determine how long their savings should last, and understand the risks and returns of their investments, according to this article on USA Today. To ensure they won't outlive their nest eggs, clients should estimate how long their savings should last based on their life expectancy. Clients may also underestimate their retirement income stream, so they should account for inflation when determining their cost of living in retirement. – USA Today

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