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

Opinion: The next bear market in stocks will spark a retirement crisis
A retirement crisis is highly likely if the stock market experiences a downturn, writes an expert on MarketWatch. That's because a bear market and recession could reduce portfolios earmarked for retirement, "not to mention financially dicey state and local pension plans and the federal government itself," writes the expert. "Many retirees have prepared themselves well for whatever the economy and market may bring. But far too many others have not, and their retirement may be in jeopardy if today’s bull market and strong economy become the opposite."

Bloomberg News


Retirees, maximize returns on your cash stash
Retirees have the option of maintaining cash balances and at the same generate substantial returns with full insurance coverage using titling accounts in different ways at a single bank, according to this article on Kiplinger. They may also opt to open accounts at multiple banks, and make the most of online services that will spread their cash among several banks for optimal yield. “[A] difference of a quarter percentage point makes a big difference in interest income and could well justify doing a little additional legwork,” says an expert.

Taking a loan from your 401(k) does come with risks
Taking a 401(k) loan can have consequences that could hurt the workers' retirement prospects, according to this article on CNBC. 401(k) participants who take a loan may not be allowed to contribute to the plan for six months, preventing them to reduce their taxable income. Moreover, “[y]ou’re selling shares and receiving the cash, which means the shares are no longer there growing in value,” says an expert.

Ask Larry: I'm 66 Will the earnings test still affect me?
A 66-year-old widow who is collecting Social Security survivors benefit on her husband's record will not see any reduction in benefit if she receives a considerable income, according to this article on Forbes. That's because she has already reached her full retirement age. She will also continue receiving the same amount of benefit even if she collects rental income from a property at any age.

Even wealthy Americans are worried about healthcare in retirement
A study by the Nationwide Retirement Institute has found that healthcare costs are a major retirement-related concern among 73% of rich older Americans, according to this article on Motley Fool. Some 53% of wealthy older people could not also approximate their annual medical expenses, the study found. To prepare for the cost of health care in retirement, clients should consider other options aside from saving money, such as taking advantage of Medicare, buying supplemental coverage, and getting long-term care insurance.