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

What if the retirement crisis has been exaggerated?
Most retirees polled by the Society of Actuaries claimed that they adapted to their situation of having limited retirement income and had few regrets, according to this article on MarketWatch. The respondents were not wealthy and had no financial plan, but their circumstances compelled them to adjust and live frugally, meaning they do not spend beyond their means. “Most had made peace with their standard of living a long time ago and learned to live within its constraints,” states the study.

(Bloomberg News)
(Bloomberg News)

Traditional vs. Roth: Which IRA is right for your client?
Contributing to a traditional or a Roth IRA is a smart move for clients who are maxing out their employer-sponsored 401(k) plan, according to this article on CBS Moneywatch. A Roth IRA is recommended to young workers who are in a lower tax bracket, as the account is funded with after-tax money. This means that the tax bill will be lower than when they pay taxes on the distributions from a traditional IRA in retirement, when they are already in a higher tax bracket.

Tell clients to do this one thing if they want a better retirement
Retirement savers are advised to rebalance their portfolio once a year to maximize their returns and end up with a bigger nest egg, according to this article from Money. Not rebalancing the portfolio could result in more stock allocation than bonds, and this increases the portfolio's risk exposure. Investors could incur bigger losses when the markets slow down. To minimize the tax bill when rebalancing, clients should concentrate the transactions in tax-advantaged accounts, such as 401(k) and IRA.

About to take Social Security? Read this first
Although seniors can start collecting Social Security retirement benefits at age 62, seniors should know that delaying the benefits could increase the monthly benefit payout, according to this article on personal finance website Motley Fool. They have the option to withdraw their application and repay all the benefits they received within 12 months after filing the application. A portion of their retirement benefits would also be taxed if their taxable income and 50% of the benefit exceeds a certain limit.

Don't overlook these 5 retirement income risks
Having a retirement income plan that is too dependent on personal savings is a risk that clients should avoid, according to this article from Kiplinger. Clients should also boost their tax-free retirement income and avoid putting all their savings in tax-deferred accounts, as withdrawals will be taxed as ordinary income in retirement. Clients are advised to make the most of tax deductions that will help them secure their retirement.

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