What is the Social Security Bridge option? - National Association of Plan Advisors

What is a Social Security ”bridge” option? According to Alicia H. Munnell and Gal Wettstein with the Center for Retirement Research at Boston College, a bridge option within a 401(k) plan entails using those “assets to pay an amount equivalent to Social Security benefits, thus allowing retirees to delay claiming benefits. As a result, the individual would eventually receive higher monthly payments. The bridge strategy could involve employers distributing those payments to retirees from their 401(k); those payments would continue either until the funds set aside for that purpose ran out; or until a retiree reaches age 70. John Iekel further explains the bridge strategy and why there has been “very limited” adoption of a bridge strategy. Read Mr. Iekel’s article here…

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