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Why full retirement age is so important for Social Security

Our daily roundup of retirement news your clients may be thinking about.

Why full retirement age is so important for Social Security
Seniors are advised to weigh the pros of cons of filing for Social Security benefits at full retirement age, which differs depending on the year they were born, writes a Forbes contributor. Those who decide to apply before FRA should expect a permanent reduction in benefits, while those who wait until their FRA will get 100% of their benefit, avoid the annual earnings limitation and can suspend their benefits voluntarily. Retirees who opt to file at a much later date will earn delayed retirement credits that could boost their benefits by as much as 32% as well as their loved ones’ survivor benefits.

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Social Security checks are printed at the U.S. Treasury Philadelphia Finance Center in Philadelphia, Pennsylvania on February 11, 2005. Photographer: Dennis Brack/Bloomberg News

Less jargon and more clarity about saving and investing, please
Financial advisors try to use less jargon and simpler terms when providing saving and investing guidance, as most clients do not understand or are confused with many of the financial terms that experts use, according to this article on TheStreet, citing a survey by Empower. "When it comes to retirement planning, all of these terms have meanings that are completely out of step with the definitions most people associate with them," write researchers with Empower. "Such multiple meanings can cause confusion and create barriers to confident decision-making."

How your 401(k) could imitate Netflix
More 401(k) plans are offering target-date funds as default investments that are more personalized for workers, according to this article from The Wall Street Journal. These funds factor in the participants’ age, gender, and other personal information to provide a more suitable portfolio of stocks, bonds and other investments. “Within financial services, personalization as a theme is going to become more and more of a focus. People expect it from Netflix and they are going to ask why their investment experience isn’t like this,” says an expert with consulting firm Mercer.

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