Our daily roundup of retirement news your clients may be thinking about.
An analysis of data from the Census Bureau and Bureau of Labor Statistics has found that retired couples can live off the average Social Security benefits alone if they live in certain parts of the country, according to this article on U.S. News & World Report. Seniors who will rely solely on Social Security for income should consider moving to Augusta, Ga., Cape Coral-Fort Myers, Fla., Dallas-Fort Worth, Texas, and Durham-Chapel Hill, North Carolina, where their retirement benefits will be enough to cover their cost of living. Grand Rapids, Mich., Madison, Wis., and Minneapolis-St. Paul, Minn., are also other less expensive places for retirees.
Pre-retirees and retirees are advised to pay attention to the midterm elections, as the federal government makes decisions that can affect Medicare and Social Security that have a central role in their retirement plan, writes an expert on MarketWatch. "There is no political consensus on how to deal with the funding shortfalls that are anticipated over the next 15 years, and the various proposals being considered would have dramatically different consequences for your retirement."
Clients are advised to plan proactively when developing their Social Security claiming strategy, writes a Forbes contributor. Social Security is like having an annuity that can provide up to $1.5 million in lifetime benefits for a retired couple, writes the expert. "With proper structuring, you can increase your lifetime benefits by $200,000" and "proper benefit planning can extend your asset base by four to six years and provide increased cash flow."
Parents should prioritize retirement saving more than saving for their children's education, according to this article on Fox Business. They should start saving in 401(k) plans as soon as they can to make the most of tax-deferred growth on their savings. “Your children will be busy building their lives, their families and their own retirement savings. If you sacrifice your own retirement planning completely and only fund education for your children, that doesn’t make much sense," says an expert.
