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

This is how much student debt will cost clients in retirement
A report from Morningstar shows that people lose 35 cents in retirement savings for every dollar of student loan debt they have, according to CNNMoney. As such, clients are advised to stash away money in their retirement accounts before they get aggressive in paying off this debt. Paying off a student loan on time is prudent, of course, but it doesn't necessarily make sense to pay it off early if that means foregoing saving for retirement. "There are very few circumstances in which paying off a student loan ahead of schedule with funds that would otherwise be saved in an employer-sponsored retirement account leads to a higher net wealth at retirement," according to the researchers.  --CNN Money

How the life-expectancy gap for rich and poor skews Social Security
The gap in life expectancy between the rich and the poor leads to a significant disparity in the overall Social Security benefits they receive in retirement, according to a report from the Government Accountability Service. Men who earn $20,000 annually and retire at 62 could receive about $156,000 if they live for another 21 years, but the actual benefits could be reduced to $138,000 since they are less likely to live that long, the report says. Meanwhile, men who get $80,000 in annual income and retire at the same age could get about $355,000 in total benefit payouts if they live the average life span but they are more likely to collect about $411,000 in benefits since their life span is longer than the average life expectancy.  --The Wall Street Journal

Clients shouldn't rely on 4% rule for retirement
Clients who want to make sure their nest egg lasts through retirement should no longer depend on the 4% rule when tapping their savings, according to MarketWatch. The rule is no longer applicable given current market conditions characterized by historically low interest rates and dividend returns. Those who are preparing for retirement are advised to develop a withdrawal strategy based on the time horizon for their portfolio and the performance of their investments.  --MarketWatch

Clients need to act fast to make Roth IRA contributions for child
Parents should encourage their children to contribute to a Roth IRA if they are working and earning from the job, according to Kiplinger. Aside from their money to grow for a long time, their children can tap their contributions without paying taxes if the money will be used for college needs or down payment on a home, and withdraw the account's earnings after reaching 59 1/2 without a tax penalty. Since their children can make up to $5,500 in Roth contributions, parents may give their children additional amount so the children can max out the limit.  But they will have to act quickly because the deadline for making contributions for 2015 is April 18. --Kiplinger

Millennial clients shouldn't despair about retirement
Millennials should not feel pessimistic about their retirement prospects since they have a lot of time ahead before they retire, according to Forbes. With ample time on their hands, they should start saving and investing early so their investments will have more time to grow through compounding. Investing in a Roth IRA is a good option for millennials since the substantial dividend returns over those years will be tax-free when withdrawn in retirement.  --Forbes

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