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

Why didn't many retirees see a Social Security increase?
An expert says that although the Social Security cost of living adjustment increased 2% this year, 50% of the retirees cannot expect a substantial increase in their benefits, according to this article on Fox Business. "For the majority of beneficiaries, even though the annual Social Security COLA was 2% this year, that did not boost benefits enough to cover the entire amount required for the monthly $134.00 Medicare Part B premium," explains the expert. "This was primarily due to the after effects of the Social Security 'hold harmless provision.'”

Social Security checks (Bloomberg News)


For athletes, it’s double trouble to plan for retirement
Athletes will have to prepare for a form of retirement that happens immediately after their athletic career and another in old age, according to this article on The Wall Street Journal. This means cutting on their expenses when possible to free more money to save. “We call it wealth planning through the arc of their career,” says an expert.

Why more people should probably use pre-tax retirement accounts instead of Roths
Clients will be better off saving in a pre-taxed traditional retirement account than a Roth, as the tax savings could be higher if contributions are made on a tax-deferred basis, according to this article on Motley Fool. Contributions to a a pre-taxed account reduce taxable income and enable clients to incur tax savings at their marginal tax rate. Tax savings on Roth contributions are at the effective tax rate, which means that clients will need a bigger income to get the same level of tax savings with pretax contributions.

403(b) contribution limits 2018
A 403(b) retirement plan is the savings vehicle for clients who are working for a public school or nonprofit, according to this article on Yahoo Finance. Contributions to the plan are made on a pre-tax basis, and clients can contribute up to $18,500 to the account this year. However, clients should ensure that their contributions do not exceed the limit, as the contributions will be taxed twice by the IRS.

The ins and outs of applying for a loan in retirement
A loan can be a good option for retirees, especially if debt offers a better interest rate or allows them to maximize tax savings, according to this article on U.S. News & World Report. Those who consider taking a loan should look for the right one, such as refinancing or obtaining a mortgage, which comes with a tax break. "With the new tax law, a lot of deductions have been stripped away," says an expert.

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