Our daily roundup of retirement news your clients may be thinking about.
Working longer and taking on a part-time job are two of the simple strategies seniors should consider to curb the unfavorable impact of a market correction on their retirement prospects, according to this article on The New York Times. Seniors should also ensure that their portfolio is diversified in low-cost investments, minimize their spending, strategize their stock allocation and consider annuitizing their savings to create a guaranteed income stream. Holding a cash reserve and delaying Social Security are also recommended.
An analysis of Labor Department data by research firm the Liscio Report shows that about 50% of all employment gains last year were workers aged 55 and above, according to this article from USA Today. This means that 1.4 million of the 2.9 million new positions created last year were filled by Americans aged 55 and older, the analysis found. “You have an aging workforce,” says an economist.
Clients who intend to retire early should remain optimistic of their prospects despite the recent market volatility, according to this article on MarketWatch. That’s because the slowdown is not enough to derail their early retirement plans. “Equity valuations look pretty attractive now!” says an expert. “I’d argue that with earnings growth so strong and at least solid going forward there’s a good chance that drawdown in the fourth quarter is only temporary.”
One question that clients are recommended to ask their financial advisors to improve their finances this year is how to make the most of the savings accounts and financial benefits that their employer offers, according to this article from Kiplinger. Advisors should be ready to advise them on how their 401(k) plan can fit into their retirement plan. Advisors can also help them leverage medical savings accounts and other financial plans offered by their employer to improve their future financial prospects.
