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

Why workers and retirees missed the roaring bull market
Many retirees and investors have ignored the strong performance of the market in recent months as investor optimism has declined, according to a Wells Fargo/Gallup poll. When asked if that S&P 500 index increased 10%, 20%, or 30% last year, only 11% of adults with at least $10,000 in savings and investments got it right. (The answer is 30%). This is despite the fact that 67% of them rated themselves somewhat or highly knowledgeable about investing. The poll found that people instead are losing optimism about the market and their investments, which could be attributed partly to the fear felt by about half of retirees and workers of outliving their nest eggs, the survey found. Clients should ease their pessimism, as the economy and other market conditions have improved since the recession.--CNN Money

Fed policy and your retirement portfolio
The Fed is poised to increase interest rates after summer next year amid improving economy and deflation risks. Retirees who have fixed-income in their investment portfolios need to study the possible impact of interest rate increases on their investments. They should also consider the possible effect of inflation, which could diminish their purchasing power if they use a very conservative investing strategy. --MarketWatch

Social Security Q&A: Can I file and suspend at 62?
A client cannot file and suspend his Social Security benefit until the full retirement age of 66 if he and his wife intend to retire at 62, according to Forbes. The couple will also be compelled to take reduced retirement benefits, but can still get a higher benefit value if they suspend when they hit 66 and resume the benefits when they reach 70. The spouse who files for retirement benefits in a later time will also be required to seek a reduced excess spousal benefit.  --Forbes

Unexpected consequences of early retirement
Workers who have planned an early retirement often will face unexpected consequences when the time comes, according to U.S. News & World Report. As they had to curb their expenses and work hard to build a substantial nest egg, early retirees need to be more committed to building their savings during their shortened work years.  They might also feel scared of quitting too soon, while some people would have mixed reactions about their retirement. Early retirees might also feel uncomfortable spending down the money they saved for so many years, and are likely to miss some aspects of their career.  --Yahoo Finance

Retire in Style at a Continuing Care Retirement Community
A continuing care retirement community is a good place for clients to retire as it supports the lifestyle they want and offers facilities that aged people will need, according to Kiplinger. Read about a couple who opted to live in such a community and the experiences they faced, including the issues that all retirees should consider before they make a decision.  --Kiplinger

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