Social Security

In a panel discussion, three financial advisers explained why the products are often misunderstood and how to assist clients in evaluating their policies.

For one, clients will owe taxes still on the distributions, unless they recontribute the money into the account within three years.

Clients are advised to minimize spending and tap possible sources of cash and credit, including their tax refund.

“Find ways to generate income,” says one financial planner.

While some retirees have seen a substantial increase in spending, many others are enjoying financial freedom.

To start, these clients are advised to start saving as early and contribute enough to their 401(k)s to qualify for their employer's matching contribution.

More than a quarter of women in a recent survey say they are confident they will comfortably retire, while almost a third of men voiced the same confidence.

Aside from income taxes, retirees will also pay consumer taxes and may face a 3.8% Medicare surtax.

The spike in the number of older employees in the workplace reflects a trend over the past decade.

Taking advantage of catch-up contributions is one of several methods that can help them get back on track.