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Closing the gap between when clients want to retire and when they’ll be able to

Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.

Closing the gap between when clients want to retire and when they’ll be able to
Saving for retirement early and consistently may not be enough for clients to retire at the age they intend to leave the labor force for good, according to an article from Motley Fool. To retire when they would like and on their terms, clients are advised to consider taking on a more aggressive investing approach. This means building their portfolio with a heavier emphasis on stocks and limiting their assets in bonds and other conservative investments.

Retirees are advised to tap into their Roth accounts last to minimize hefty tax bills associated with 401(k) distributions.

Here’s how Americans are saving for retirement
More than half of Americans save for retirement using defined contribution plans, the most popular form of savings, according to this article from Fox Business. While nearly one-quarter of Americans don’t expect to ever retire, many still have some form of savings. However, many non-retirees are struggling to save money despite the growing U.S. economy: about half of Americans are expected to experience a shortfall in their retirement savings plan, according to Fidelity Investments.

How to fix clients’ 401(k) before it’s too late
Employer-sponsored 401(k)s are great retirement savings vehicles because of tax and other benefits — but many of the retirement plans can have flaws, according to this Yahoo Finance article. Workers are advised to take steps to improve their own personal accounts including rebalancing regularly, reviewing their options and avoiding dipping into their savings early. Workers should also view their 401(k) as part of their entire portfolio. For example, if they have a big stock allocation in their 401(k)s, they might want to reduce exposure by diversifying into bonds and other less risky investments.

The latest Financial Wellness Report reveals client preparedness for ageing and emergencies.
November 26

Should working longer be a part of clients’ retirement plan?
Clients may want to work longer to boost their retirement prospects, as this option allows them to delay their Social Security benefits for bigger payouts, says an expert in this Morningstar article. This strategy can also shorten their retirement horizon as well as reduce the needed amount of savings to fund their retirement, the expert adds. However, this option does not work for everybody, especially for workers who are forced to retire because of lay-off or serious medical issues.

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