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

What Social Security needs: dependability
Congress needs to revamp Social Security to ensure that retirees will receive about 75% of their benefits in case the trust fund is depleted, writes William Reichenstein, Powers Professor at Baylor University. Social Security's Trust Fund is likely to run out in 2033 if lawmakers fail to act, and one way to fix the shortfall is to use a new measure that yields a lower inflation than what the current formula provides, says Reichenstein, who is also head of research at www.socialsecuritysolutions.com. "I believe most of us would rather have a slightly lower level of promised benefits that we can depend on than to have a potentially dramatic reduction in benefits about 2033."  --The Wall Street Journal

Why Obama’s proposals just might help middle class retirement security
President Barack Obama has proposed to curb tax deductions on mega-IRAs to help cover other changes such as automatic IRA enrollment for workers with no access to retirement plans, according to an article on Time Money. The proposed changes make sense but won't really secure retirement security of the middle class, who don't have adequate resources that allow them to build a sizeable nest egg. A more effective way to enable lower-income households to boost their retirement prospects is to expand Social Security.  --Time Money

Boomers still have an edge over millennials
A survey suggests that most employers prefer older workers who have better qualities compared with their younger counterparts, according to this article on MarketWatch. This could be good news for many baby boomers who will be in a better position if they choose to remain at work instead of taking an early retirement. However, the real solution for those who don't have enough savings to cover their needs in retirement is to defer their Social Security benefits while keeping their jobs.  --MarketWatch

Why working longer isn't always an option
Although working in retirement will enable seniors to have an income to cover their needs, people need to build their nest eggs while they are young and have the opportunity to save, according to this article in U.S. News & World Report. Working past the retirement age may not be a feasible option for some people who are likely to have health issues in the future. It is also not a good idea to plan on working through the golden years because there may not be enough jobs in the future and finding employment will be difficult.  --Yahoo Finance

Have an empty nest? Why you should rent in retirement
Instead of buying a home, empty nesters are better off renting a place as they can have more money to spend on other needs, according to this article on Forbes. Renting also enables people to avoid spending on maintenance, as the landlord is the one responsible to repair broken parts of the house. Retirees who rent can easily choose a place that allows mobility, and they can also try out new places, something that homeowners can't afford to do.  --Forbes

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