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

A tax-free account for Medicare that very few people use
Seniors who reach the age of 65 and are in good health have the option of opening a Medicare medical savings account, according to this article on CNBC. The MSA is a tax-favored savings account in which funds accrue interest in a tax-free basis. Withdrawals used for medical expenses are not subject to taxes, and Medicare also makes contributions to the account.


The risk pension funds can’t escape
The recent market correction shows that stock continues to pose a significant risk to public pension funds that incurred hefty losses in the last financial crisis, according to this article on The Wall Street Journal. Public pensions continue to invest in stocks to achieve their aggressive investment targets to cover mounting benefit payments to retirees. “Equities always take up a disproportionate share of the risk budget that any plan has. You can never get away from it,” says an expert.

The serious financial considerations of marrying later in life
Seniors who plan to remarry in retirement are advised to account for the repercussions before making a decision, according to this article on MarketWatch. Although marriage will bring various benefits, such as coverage from the spouse's health insurance policy and pension, tying the knot later in life can be a wrong move. For example, marriage could push a spouse to a higher tax bracket and make her disqualify for a subsidized health care plan.

Declutter your retirement savings: What to do with your old 401(k)s and IRAs
Clients can simplify their retirement portfolio by merging multiple accounts, according to this article on Forbes. When combining retirement accounts, they should opt for a trustee-to-trustee transfer, which allows them to roll funds directly from one custodian to another. Moreover, in general, retirement savers can merge similar accounts. They also have the option of converting some or all of their traditional IRA assets into a Roth account, but the move will trigger income tax bill.

This is how much money you should have in savings at every age
Clients should aim to have saved a certain amount by the time they reach a certain age, according to this article on Money. Based on a survey among women, clients in their 20s should aim for savings equal to their annual salary by the time they reach the age of 30, while those in their 30s should have amassed three times of their annual wage income by age 40. The retirement savings goals should be six times their income by the time they turn 50, and eight times their earnings by the time they reach 60.

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