When retirement expectations meet reality
Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
What happens when retirement expectations meet reality
Clients are retiring even earlier than they had planned, according to a growing body of research writes Morningstar's David Blanchett This can undermine the possibility they will meet their retirement income goals, he adds. . "Retirement-age uncertainty is an important consideration for financial planners, who should at least consider modeling early retirement to prepare clients for the possibility that it may occur," he writes. "This is especially true for individuals targeting a retirement age past age 65."
Social Security, Medicare and other changes coming in 2020
Clients should expect major changes in Social Security benefits, Medicare costs and retirement savings rules next year, according to this CNBC article. Contribution limits to 401(k), 403(b) and other similar plans will increase by $500, while retirees can see a 1.6% cost-of-living adjustment to their Social Security benefits. Those on Medicare should expect standard Part B premiums to increase to $144.60 in 2020.
3 ways to lower clients’ Medicare premiums
Medicare Parts B and D premiums can be costly, but there are ways for retirees to minimize the costs, according to this Motley Fool article. Seniors should sign up for Medicare Part B on time and avoid delaying their Part D coverage. Clients should also create sources of tax-free income in retirement to reduce their taxable earnings and avoid surcharge on premiums.
How to rebalance your client’s portfolio in 7 steps
Asset allocation is one of the major considerations when rebalancing an investment portfolio, according to an article in TheStreet. "If you have multiple accounts divided between taxable, tax-deferred retirement accounts it’s important that you take a total portfolio view when rebalancing...," according to the story. "The types of assets held in various types of accounts, known as asset location, can also be an important factor and can make rebalancing easier over time."