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

Will clients’ target-date 401(k) funds blow up their retirement?
Although target-date funds enable investors to put their retirement saving on autopilot, a TDF manager may take on more risks than what they can tolerate, according to this article from Forbes. For example, a TDF manager may increase the fund's stock exposure, including those from volatile emerging markets. "Such changes have worked well in the second-longest running bull market in U.S. history, but they expose investors to bigger losses if the funds’ increasingly volatile assets head south," says an expert.

No retirement savings? Thinking you’ll just work longer? Think again.
Many Americans plan to continue working past their retirement age, but many are forced to retire early, according to this article from the Washington Post. Experts say that many of those who retired earlier than planned cite health problems, layoffs, age discrimination and caregiving needs. “The irony is, those seniors who find it easiest to keep working — healthy, well-educated and highly skilled people who enjoy their jobs — tend to be the least likely to need the money,” says an expert. “Other older Americans, faced with few good job choices, often just decide to retire and live frugally off Social Security and savings.”

Most Americans close to retirement have saved only 12% of what they need
A survey by Bankrate has found that the median of retirement savings of Americans aged 55 to 64 is $120,000, which is just 12% of the amount recommended by experts, according to this article on CNBC. Those who are in the 65-74 age group have a median of $126,000, an amount that the report states "won't last long in the absence of paychecks."

5 problems with retiring in your 50s
Clients will have a hard time retiring in their 50s, as they are not yet allowed to tap their retirement accounts such as 401(k) and IRA for income without incurring a hefty penalty, according to this article on personal finance website Motley Fool. They also cannot file for Social Security and will be too young to sign up for Medicare. Clients who retire in their 50s increase the odds of outliving their nest egg and easily grow tired especially if they are singles.

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