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

Social Security recipients: Don't count on a raise in 2016

Retirees cannot expect bigger Social Security benefits next year as cost-of-living adjustments are unlikely to increase, according to this article on USA Today. The COLA next year will remain the same because inflation remains tenaciously low. –USA Today

Best target-date funds for retirement savers

While target-date funds have become a staple in 40(k) retirement plans, participants need to realize that these investment options vary and the difference could have an impact on their investments, according to this article on Kiplinger. To know if the TDF suits their risk allocation, 401(k) participants should look into the funds' glide path and the quality of the funds in their portfolios. Also clients have to check the funds' annual expenses, since some of them may charge relatively higher fees than the others. –Kiplinger

Is the case for active management stronger in retirement?

Retirees are better off using an active management approach to investing to curb the dwindling returns when they start taking withdrawals from their portfolios, according to a paper from American Funds. The strategy will work if they choose retirement managers who offer low expenses and high manager ownership of funds, the paper says. Also, active management can lead to a low downside capture, which means that the funds had not incurred full losses of the market, an attribute a fund should have to meet investor's withdrawal needs. –Morningstar

Social Security Q&A: Can non-citizen spouses and children collect benefits?

A foreigner and her children are entitled to Social Security child-in-care spousal and child benefits on the spouse's record, according to this article on Forbes. However, they need to be lawful residents in the U.S. to collect the benefits. –Forbes

The simple reason you’ll probably never retire comfortably

Some 15% of Americans tapped their retirement savings last year to cover an emergency expense, according to a study by Bankrate. Seniors are most likely to withdraw or borrow from their retirement savings to pay for higher medical bills and other emergencies, and this is “particularly troubling,” says Greg McBride, Bankrate's chief financial analyst. “These are the years when they should be putting the hammer down to boost savings.” –MarketWatch

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