Why employees who claim Social Security early often live to regret it
Our daily roundup of retirement news your clients may be thinking about.
Why people who claim Social Security early often live to regret it
A study finds that claiming Social Security benefits early is associated to a bigger risk of living in poverty, according to this article from MarketWatch. The study author notes that retirees might be experiencing the “Homer Simpson” mindset, in which they choose immediate gratification without thinking about the long-term consequences. The author also said that retirees might have limited information so they fail to make good decisions on retirement planning.
Shift your retirement nest egg to an income stream
Pre-retirees should consider transforming their retirement savings into an income stream to be better able to weather the costs of retirement, preferably starting the process as early as in their 50s, according to U.S. News & World Report. This strategy of shifting retirement funds also helps shield retirees from drastic stock market fluctuations. Clients should consider gradually moving away from equities and putting the money in safer assets such as bonds and annuities, home equity and life insurance. They are also advised to accumulate cash reserves for bear market periods and to wait until full retirement age before claiming Social Security benefits.
Freedom of Information website leaked Social Security numbers
FOIAonline.gov, a website that facilitates Freedom of Information Act requests, and maintained by the Environmental Protection Agency, leaked sensitive user data such as Social Security numbers, birth dates, contact details, addresses and immigrant ID numbers, according to this article from Newsweek. “The issue affects a limited number of cases and inadvertently displays descriptive information that may, in some instances, include social security numbers. EPA will follow the agency's breach procedures to evaluate the situation further and take the appropriate…measures,” said a spokesman.
3 major changes in Trump's retirement executive order
A new executive order signed by President Trump could make it easier for workers to save for retirement, according to Forbes. The proposed changes under the order include reviewing the required minimum distribution rules with the goal of starting withdrawals later than at age 70 ½ or reducing the required amounts, and asking the Labor Department to consider allowing the creation of pooled 401(k) plans among multiple, unaffiliated employers, thereby covering employees of small businesses that wouldn't otherwise have been able to start them. The order also calls for a review of the administrative and paperwork requirements for employers looking to offer retirement savings plans.