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Is it a viable plan to use my k for the eight years between retirement age 62 and the max payout age for Social Security age 70? Waiting to file for Social Security in order to take advantage of the delayed credits is a good strategy for those who want to maximize their benefits. If you retire before you start claiming your benefits, you'll need a source of income to bridge the gap between the time your paychecks stop and when your Social Security begins. If you have a sufficient balance, then yes, withdrawing from your savings is a perfectly viable option to consider. There's often more than one way to accomplish a goal and you need to consider your own preferences and concerns.

Social+security+bridge+smartasset

A financial advisor can help you make a plan for creating stable and reliable income in retirement. Find a trusted advisor today. Delaying your benefits beyond full retirement age FRA will result in larger Social Security payments when the time comes to collect. A retirement strategy known as the Social Security bridge is one way to create an enlarged stream of guaranteed income without an annuity. Researchers at the Center for Retirement Research at Boston College recently examined this relatively unknown strategy and found that many workers would use it if given the opportunity. The bridge strategy is a method for locking in higher lifetime Social Security benefits by using k assets as a stopgap. Instead of claiming Social Security immediately after leaving the workforce, a new retiree uses their k assets or other savings as a substitute for Social Security until age 70 when they can claim their largest possible benefit. The bridge strategy capitalizes on this incentive and creates a larger stream of annuitized income. Then again, a Social Security bridge may not be beneficial for people with shorter life expectancies. An annuity is a contract you sign with an insurance company, whereby you pay a lump sum or make periodic payments in exchange for guaranteed payments at a later date. Although they are often considered expensive and complex , annuities can provide peace of mind to retirees who are worried they may outlive their savings. Instead of using k assets to buy an annuity from an insurance company, the Social Security bridge strategy pays the retiree an amount equal to the Security benefits they would have claimed at retirement. By delaying Social Security until age 70, the retiree maximizes their eventual benefits and creates a larger stream of annuitized income. Also, unlike payments from annuities, Social Security benefits are adjusted annually for inflation, which helps retirees protect their purchasing power. The more information respondents were given about the Social Security bridge strategy, the most interested they were.

Story continues, social+security+bridge+smartasset. I can't definitively say this is a good plan for you without knowing social+security+bridge+smartasset about your situation, but delaying Social Security is often a smart choice and a 2.

Most people approaching retirement plan to rely on Social Security payments for at least part of their retirement income, and they also realize that the longer they wait to claim those benefits, the bigger their monthly Social Security check will be. For more help planning a Social Security bridge strategy in the particularly complicated environment, consider matching with a financial advisor. For some fortunate people, this kind of bridge to Social Security could be produced by withdrawals from investments and savings, while anyone lucky enough to collect a good-sized pension also could afford to wait. Another option would be purchasing a simple annuity to provide income. All that, however, assumes a younger retiree has access to some asset, or combination of assets, significant enough to allow them to forgo Social Security payments for as long as eight years.

Most people approaching retirement plan to rely on Social Security payments for at least part of their retirement income, and they also realize that the longer they wait to claim those benefits, the bigger their monthly Social Security check will be. For more help planning a Social Security bridge strategy in the particularly complicated environment, consider matching with a financial advisor. For some fortunate people, this kind of bridge to Social Security could be produced by withdrawals from investments and savings, while anyone lucky enough to collect a good-sized pension also could afford to wait. Another option would be purchasing a simple annuity to provide income. All that, however, assumes a younger retiree has access to some asset, or combination of assets, significant enough to allow them to forgo Social Security payments for as long as eight years. But thanks to the startling increase in home values, many homeowners already sit on a sizable amount of home equity that could be tapped through a reverse mortgage.

Social+security+bridge+smartasset

Wish I could take credit for this article, but I must admit this concept came from something a client sent me the other day. I know a lot of people struggle with when to take Social Security. There are many things to consider when collecting Social Security. When considering Social Security , some of the things worth thinking through are as follows. Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of expert advice - straight to your e-mail.

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If you have a sufficient balance, then yes, withdrawing from your savings is a perfectly viable option to consider. Reverse mortgages have significant pros and cons , and have been exploited by scam artists, but they can be a useful retirement and estate-planning tool. Social Security benefits are incredibly valuable to retirees. I also want to point out that nothing in my answer above speaks to whether or not this plan will provide you with enough income to cover your expenses in retirement. Crude Oil Researchers at the Center for Retirement Research at Boston College recently examined this relatively unknown strategy and found that many workers would use it if given the opportunity. The average claiming age inched up between and , from The option for a reverse mortgage might be more attractive now that the stock market is down, as Christian Mills, head of financial advisor relations with Reverse Mortgage Funding, explained to ThinkAdvisor. I can't definitively say this is a good plan for you without knowing more about your situation, but delaying Social Security is often a smart choice and a 2. Follow the writer. Helpful Guides Student Loans Guide. Helpful Guides Investing Guide. A guide to the details and conditions of reverse mortgages is available from the Consumer Finance Protection Bureau.

A financial advisor can help you make a plan for creating stable and reliable income in retirement. Find a trusted advisor today.

A retired couple looks at a Social Security check together. A previous version of this column misstated when an 8. Helpful Guides Personal Loan Guide. Compare Rates Personal Loan Rates. A caregiver walks alongside a man in a park. Here is a list of our partners and here's how we make money. I also want to point out that nothing in my answer above speaks to whether or not this plan will provide you with enough income to cover your expenses in retirement. The more information respondents were given about the Social Security bridge strategy, the most interested they were. A financial advisor can help you assess your risks in retirement and create an asset allocation designed to meet your needs. I'm an Advisor Find an Advisor. Helpful Guides Student Loan Guide.