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

Low interest rates a growing threat to Social Security
Social Security retirement benefits for younger generations could be at risk, as U.S. Treasury yields are at historic lows and could threaten the program's solvency, economist say. The trust fund has seen a decline in earnings from Treasury bonds over the years as the economy recovers very slowly and interest rates remain at historical laws, with the income from tax revenue not enough to fund Social Security and other government obligations, according to this article on MarketWatch. Making the problem worse, the Social Security trust fund only invests in U.S. Treasuries, whose yields have been suppressed by tepid economic growth and unusually strong demand by investors worldwide for financial safety. Indeed, the benchmark 10-year Treasury is yielding an all-time low of 1.51%, compared with about 4% before the recession from 2007 to 2009, and 6.8% from 20 years ago. The ultimate impact, if any, would affect Americans born between the mid-1960s to the mid-1970s, according to the article. There are a number of political changes that could be implemented (for instance, an older retirement age or an increased cap on payroll taxes), but if no changes are made to the current situation, financial demands will soon start draining the trust fund faster than it can be replenished, and by 2034 it would be depleted. --MarketWatch

Long-term care for seniors is on life support
Americans across the country are facing a considerable increase in their long-term care insurance premiums, according to this article on CBS Moneywatch. Insurance carriers are compelled to raise the premiums because the average life span is increasing while interest rates continue to drop. More people also hold on to their policies, resulting in more claims than what the carriers expected, while retirees get sick and stay longer in nursing homes, which means a longer period of collecting claims. --CBS Moneywatch

Tell clients to buckle up: It's not their fathers' retirement
A survey found that the average age Americans actually retired increased to 66 in 2011 from 60 in 1995, with the number of people seeking an early retirement decreasing to 28% from 50%. “With individuals living longer and an unpredictable financial landscape possible in the years to come, it’s crucial that Americans prioritize planning for retirement today in order to be adequately prepared for the future,” says an expert. --Fox Business

Retiring abroad: 3 things clients should know before they go
Seniors who want to move overseas in retirement are advised to stay in the foreign country they consider for several months to try out the place before buying a property and settling there for good, according to this article on CNBC. They should also account for the tax implications of relocating abroad, as they may be taxed twice on income if they don't know the rules. Another consideration to make is that health services overseas are not covered by Medicare, so it's important that they know health-care options available in their new home country. --CNBC

Changing jobs? Don't forget about retirement plans.
People should decide what to do with their retirement account when they change jobs, according to this article on U.S. News & World Report. They are recommended to seek professional guidance from a financial adviser, who can help them define their goals as well as tell when where to invest their retirement savings. Moving to a new employer may be motivated by an increase in salary, so clients should consider raising their contribution rates to enhance their retirement prospects. --U.S. News & World Report

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