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

What a cap on 401(k)s could mean for wealthy savers
A contribution cap on tax-preferred retirement plans proposed by the government shouldn’t worry retirees yet because the proposal is still in the early stages, which means it could still be changed significantly or not pass at all, according to CNBC. The proposal will impose a $3.4 million ceiling on the plans but details on its implementation are scare. Moreover, even if the propsosal were to pass in its current form, most clients won’t be affected by the cap. According to a Fidelity study, only 72,000 of the 401(k) savers in its network had $1 million saved in their 401(k)s last year. To be sure, this represents a significant increase, but only 9% of those millionaire savers had $2 million, much less than the $3.4 million proposed cap. More to the point, the average 401(K) balance hit a record high of just $91,300 last year. --CNBC

Why mortgage debt threatens boomers’ retirements
Although elderly people's total debt payments as percentage of income dropped to 10% in 2013, financial liabilities for households headed by people 55 and above grew to 65.4% in 2013 from 63.4% in 2010, according to a report from the Employee Benefit Research Institute. The percentage of these households with excessive liability or debt exceeding 40% of income rose to 9.2% in 2013 from 8.5% in 2010, the report says. The “percentages of families whose debt payments are excessive relative to their incomes are at or near their highest levels since 1992. Consequently, even more near-elderly and elderly families are likely to find themselves at risk for severe changes in lifestyle after retirement than past generations.”  --MarketWatch

U.S retirement worries go global
Clients should save as much as they can and live within their means to have enough money for retirement, writes Gail Buckner, a retirement and financing planning specialist. A massive study by HSBC found that an average of 34% of people around the world isn’t confident that they would be able to maintain a comfortable life once they retire. Thirty-eight percent of retirees also say that given another chance they would save at a younger age and almost 40% say 30 is the latest age to start saving.  --Fox Business

Good news and bad news for Americans’ 401(k) savings
Taking out loans or making early withdrawals from 401(k) plans and other retirement accounts has its advantages and disadvantages, according to this article on Daily Finance. A 401(k) loan may be less expensive than salary and credit card loans when it comes to interest rates, but taking money from the retirement account comes with charges on income tax and a 10% penalty. --Daily Finance

Good reasons to work past retirement age
Making use of employer benefits is one of the most common reasons for delaying retirement. A company’s health insurance benefit could be less expensive compared with Medicare and could offer wider coverage. Employees who keep their job after age 65 can also get 8% more Social Security benefit for every year of delay. Lastly, a longer stay in a company can help employees build more relationships.  --Kiplinger

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