Maximizing Social Security – A Strategy - AMAC & USA Today
Russ Wiles of USA Today explores the idea that employers, who already assist employees with 401k plans, might better manage withdrawals, with an eye toward maximizing Social Security benefits. He cites a recent study by the Center for Retirement Research at Boston College that explored the notion of employers with 401(k) programs offering ‘bridge’ withdrawal options, “so that workers or retirees in their 60s could delay claiming Social Security retirement benefits while those payments increased, preferably to age 70 when payments reach a maximum.” The idea is companies would help distribute payments to retirees from their 401(k) plans about equal to the Social Security benefits those people would receive if they claimed now. Example: if you retired at 65 and were in line for, say, $2,000 in monthly Social Security payments at that age, that’s what you would withdraw from the 401(k) plan. Read more in Giles’s full piece on this interesting concept here.