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

Client finally retired? They shouldn’t be afraid to spend money
New retirees are anxious about spending their savings, depriving themselves of some comforts for fear of outliving their nest egg, according to this article on CNBC. However, they can avoid this if they have a smart spending plan, which includes a good budget, charitable donation for the tax deductions, and long-term care insurance. Spending responsibly is also recommended if they have cash reserves for emergencies.

Are ‘clean’ shares best for your retirement account?
Transactional shares and clean shares are new fund shares that financial services industry has introduced for retirement investors, according to this article on MarketWatch. These new products are designed to help financial advisors comply with the Labor Department's fiduciary rule while sticking to their conventional business model. However, these funds do not eliminate all conflicts and may not offer lower overall costs. “While T shares offer the convenience of ‘all-in-one’ pricing; clean shares enable clearer disclosure of who pays how much to whom for what,” says an expert.

‘Senior inflation’: The not-so-silent retirement killer
Clients engaged in retirement planning should prepare for the rising health care costs, which have increased by almost 4% annually for the past 10 years based on data from the Bureau of Labor Statistics, according to this article from Kiplinger. One strategy to prepare for this "senior inflation" is to invest in high-quality dividend-paying stocks and include some high-quality floating rate bonds. Clients may also consider annuity products with medical riders, but they should check the costs and restrictions first.

The thing you love the most can kill your retirement
While supporting adult children may not be avoided, parents should not tap into their nest egg, as such a move puts their retirement in peril, according to this article from Forbes. Parents should rethink why they are helping an adult child, knowing whether the child really needs financial support or has other options to address their financial woes. Parents should also push the child to get some things done for them, such as paying rent if he or she lives in their home.

How does Social Security fit into my retirement plan?
Clients are advised to consider Social Security when developing a retirement planning strategy, according to this article on personal finance website Motley Fool. That's because retirees will need at least 80% of their pre-retirement income to support their lifestyle in the golden years. Social Security would replace 40% of the pre-retirement income, meaning it would be half of what they will need to cover their needs in retirement.

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