Our daily roundup of retirement news your clients may be thinking about.
Social Security scams are a growing threat to retirees
Seniors are advised to take precautionary measures to protect their Social Security information online as fraudsters are becoming more aggressive in victimizing retirees, according to this article from Kiplinger. They should register their My Social Security account as early as they can before other people can create the account, monitor the account regularly and add extra security by tying the account to their financial information such as their address and credit card. Social Security’s website also offers an option to block electronic access to personal account and retirees can remove the block once they confirm their identity.
Most of the 55-and-older crowd do little planning for end of life
A study by Merrill Lynch and Age Wave has found that 45% of Americans aged 55 and above have not prepared a will, with only 18% of older people having a will, a living will and durable power of attorney, according to this article on CNBC. Experts believe that clients should start planning by the time they reach 50. “People know this is something they need to do. They know they need to organize their affairs, put their estate plan together, and they think it’s irresponsible if they don’t," says an expert with Merrill Lynch.
The problem with the FIRE movement
The “financial independence, retire early” movement is a problematic concept because of an issue that is more fundamental than its assumptions and the model itself, writes an expert on MarketWatch. “Only a very small minority of individuals have sufficient assets to retire early at more than a subsistence level,” the expert points out. “And when they realize how much smaller their 401(k)s are from what would be needed, they may very well decide to incur far riskier strategies than they would have otherwise—and end up worse off than they would have been had the movement never existed.”
Four things to consider when picking funds in a 401(k) plan
Workers who are looking for the investments to hold in a 401(k) plan are advised to pick their choices based on what is important for them and stay focused, according to this article from USA Today. For example, choosing funds with minimal fees is a smart move for clients who want to maximize returns. Those who are automatically enrolled into a 401(k) may also be better off sticking to plan’s default investments. “Working with a financial planner to tailor the allocation within a defined contribution plan with a comprehensive view and objectives in mind would be ideal,” an expert says.
Is your retirement plan 21st century ready?
As trends point to increased lifespans, clients need to prepare for a longer retirement horizon and save as much as they can to secure their golden years, writes a Forbes contributor. The 21st century saw advancements that help retirees live longer and better than those in the past century, the expert writes. “Some people are enthusiastic about the possibility of living a long time. Others say they aren’t… Regardless of your views on the topic, there’s a good chance you will live a long time, so it only makes sense to take steps to live long and live well.”