Our daily roundup of retirement news your clients may be thinking about.
The surprising thing seniors miss the most about pre-retirement life
Research shows that many seniors returned to work after retiring for some time, with many of them saying that work was what they missed the most about their life before retirement, according to this article on personal finance website Motley Fool. Working longer can be a great decision, as it will allow seniors to keep themselves healthy and have a bigger nest egg by the time they retire. It will also allow them to delay Social Security and subsequently boost retirement benefits.
What if this turns out to be a terrible time to retire?
Seniors who are scheduled to retire during a market downturn should consider delaying retirement but engage in more meaningful and enjoyable activities, writes Christine Benz of Morningstar. They should also include safer securities in their portfolio and tap them during a down market to give volatile assets time to recover, writes the expert. They should also retain rebalancing opportunities by keeping discrete holdings, and reduce spending during a market correction.
Retirement plans being used for immediate needs not for savings
Fewer than 50% of Americans polled by PwC expressed confidence that they will retire as planned, with nearly two-thirds of the participants saying their retirement resources might not be enough to support their lifestyle after they retire, according to this article on Fox Business. The survey also found that 42% of the participants might use their retirement savings to pay for immediate expenses.
How this couple saved $1 million in 11 years and became financially independent before 40
A couple achieved financial independence and saved $1 million in just 11 years before they reached the age of 40, according to this article from Money. They accomplished this by taking all opportunities to save and cut costs. As just one example, the wife spends several hours a month breading and frying chicken cutlets for the family to freeze and use over the coming weeks to avoid buying takeout.