Is a Social Security Bridge a Good Retirement Plan?

A Social Security bridge provides monthly income in place of Social Security and starts after you stop working.

A Social Security card sits alongside checks from the U.S. Treasury in Washington on Oct. 14, 2021. Kevin Dietsch/Getty Images

Financing retirement without drawing an early Social Security benefit is a bridging strategy that can improve your Social Security income. Deferring your Social Security benefit until you’re at full retirement age or 70 helps you lock in a higher, inflation-protected Social Security check for life. It can also help improve the financial outlook of a spouse.

Social Security penalizes those who claim benefits before age 70 by reducing benefits. So, postponing withdrawing Social Security early can make sense for many people. But does a Social Security bridge strategy work for everyone? There are several ways to go about it.

A Bridge Provides Monthly Income

A Social Security bridge provides monthly income in place of Social Security and starts after you stop working. You receive an actual monthly income while allowing your Social Security benefits to grow. The longer you delay starting Social Security, the larger the benefit.

Waiting to Withdraw Benefits

When deciding whether to start collecting Social Security benefits or start a bridging strategy, it’s important to run the numbers. They differ according to age.