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

The 2 biggest risks to future Social Security benefits

Future Social Security benefits are at risk because of the number of older people is increasing, according to this article on The Motley Fool. Declining interest rates also pose a risk to future benefits since the Social Security's earnings from its trust fund investments depend heavily on these rates. These trends could mean that future beneficiaries can expect smaller value of their benefits. –The Motley Fool

A scary movie: Filling your 401(k) with company stock

Although there are advantages if employees own stocks of their employers in their 401(k) plans, experts say that choosing an employer stock within the plan can be a risky move, according to this article in The New York Times. Employees boost their allocation to their employer stock after the stock performs well, just in time for it to reverse course, says Morningstar's David Blanchett. Read more reasons why 401(k) participants should forgo a higher allocation to their employer stock. –The New York Times

IRAs are better than ever for retirement savings

Recent changes to the IRA rules have made the account a more attractive option for building a nest egg, according to this article on MarketWatch. The contribution limit for a traditional IRA has increased to $5,500 from $2,000, with those aged 50 or older as of Dec. 31 allowed to contribute up $6,500 under the new rules. Also, spouses can also contribute the same amount to their own IRA, enabling couples to boost their retirement savings. Read more changes that make IRA a good retirement saving vehicle. –MarketWatch

How much to invest in an immediate annuity

An annuity product is a good option to supplement retirement income, according to this article on Kiplinger. Retirees are advised to determine their total living costs and deduct their Social Security benefits and other guaranteed income to determine how much they would invest in annuity. However, an annuity may not be enough to fill the gap since the payments will be based on existing rates the product was bought and the gap could widen because of inflation. –Kiplinger

How to determine the return on delaying Social Security

A client who will start collecting Social Security benefits at age 62 does not need to reinvest the money to exceed the amount of benefits that he would have received if he filed for the benefits at age 70, according to this article on MarketWatch. However, if he lives through the break-even age of 81, the inflation-adjusted "real return" of reinvesting the money could be significant. He could expect a 3.2% at age 84 and 5.2% when he turns 90, according to Professor Wade Pfau. –MarketWatch

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