How Can You Create an Income Bridge to Delay SS?

Written by John Macy, Financial Coach, MBA, Retirement Income Certified Professional® (RICP)

Introduction

Are you retiring early (or at least before you want to claim Social Security)? Many people know they should delay claiming Social Security (SS) but wonder how they will be able to fund their initial retirement years without the benefit of that Social Security income stream. Here’s how to create an income bridge between your retirement date and Social Security claiming date.

Why Delay Claiming Social Security?

For many, retiring early is the dream. But claiming Social Security at 62 results in a substantial permanent reduction in SS monthly payments compared to claiming at 70.  Remember: those SS monthly payments are guaranteed for life and inflation protected — you want to maximize those if you can.

This article by David Altig, Laurence Kotlikoff, and Victor Yifan Ye entitled "How Much Lifetime Social Security Benefits are Americans Leaving on the Table" published by the National Bureau of Economic Research in 2022 concluded that "virtually all American workers age 45 to 62 should wait beyond age 65 to collect. More than 90 percent should wait till age 70."

For a married couple, the larger SS payment will continue as long as either partner is alive, so it is doubly important to maximize the larger SS payment. However, it is often fine for the lower-earning spouse to claim SS early, since this will have a minimal impact on their long-term cash flow and can provide needed income while the higher-earning spouse is waiting to claim SS. The recommendation for the higher-earning spouse to delay claiming SS while the lower-earning spouse claims early does not depend on which spouse has the longer life expectancy  — the surviving spouse will always get the higher SS benefit, regardless of which spouse earned it. Open Social Security, a free app available on the internet, can help you determine your optimal SS claiming strategy based on your particular situation.

The Social Security Delay Comparison

Claiming Age	% of Full Benefit (Est.)	Yearly Increase if Delay	Survivor Benefit Impact
Age 62	~70%	N/A (Reduced by 70% for Life)	Permanently Reduced
Age 65	~86.7%	~6.7% per year from 62	Partially Reduced
Age 67 (FRA* for those born in 1960+)	100%	~6.7% per year from 62	No Reduction or Increase
Age 70	~124%	8% per year from FRA*	Maximized for Survivor

*FRA = Full Retirement Age (67 for most people)

If you’re retiring at 65, 62 (or even earlier), how do you cover living expenses until your Social Security benefits hit their maximum at age 70?

The solution:  Create an Income Bridge

Let's use an example of a married couple, Chris and Jamie, who are retiring at 62. Jamie, the lower-earning spouse, plans to take SS immediately, but they want to delay Chris's higher SS benefit until 70 to maximize their guaranteed income for their joint lifespan. They need to create $30,000 in additional annual income to cover their lifestyle expenses during those 8 years (from 62-70) while they are waiting for Chris' SS benefit to begin. Here are three strategies they could use to comfortably bridge the gap:

1. Annuity Bridge:  Chris and Jamie could use a portion of their investment portfolio to buy a single-premium 8-year fixed immediate annuity paying $30,000/year. This provides a steady, guaranteed monthly paycheck that can cover essential expenses until their Social Security benefits begin.  Even though CPI-linked annuities are not available today, they can buy an annuity with a fixed annual cost-of-living increase of 2-4% which will cover most of the inflation they will likely experience. Quotes for immediate annuities can be obtained here. A single premium 8-year fixed immediate annuity paying $30,000/year would cost about $200,000 without a cost-of-living adjustment and about $220,000 with a 3% cost-of-living adjustment.

   
   

2. TIPS Ladder:  Chris and Jamie could use a portion of their investment portfolio to build a portfolio of 8 bonds (Treasury Inflation-Protected Securities) with staggered maturities, each with a face value of $30,000. One bond would mature each year until age 70, providing predictable, inflation-adjusted income to cover their living costs.  Alternatively, they could build a certificate of deposit (CD) ladder of CDs maturing each year over the next 8 years, although CDs are not adjusted for inflation. Assistance building a TIPS ladder of individual TIPS bonds can be obtained here. Alternatively, they can buy a ladder of target-maturity ETFs containing TIPS that mature in a single year from iShares (currently IBID, ... through IBIK for years 2027 through 2034). As of June 2026, purchasing an 8-year TIPS bond bridge (whether individual TIPS bonds or the target-maturity TIPS ETFs) providing approximately $30,000 of purchasing power each year would cost roughly $220,000 assuming real yields (after inflation) of about 2%.

   
   

3. Higher Temporary Withdrawals from Portfolio:  Take larger withdrawals from their investment portfolio over those 8 years (62-70) and then reduce those withdrawals in their 70s and 80s. They can do this confidently knowing two important facts: (1) their much larger Social Security check will provide a bigger share of their income once Chris begins to receive SS, and (2) overall spending in retirement typically declines about 10% per decade (or 1%/year) in retirement as retirees move from the Go-Go years to the Slow-Go years to the No-Go years. For example, Chris and Jamie could take 6-8% from their portfolio in the first eight years and then withdraw 3% after Chris' SS payments begin. Combined with a flexible spending strategy this could be a very sustainable strategy.

Why This Works

Think of delaying Social Security as one of the best 'investments' available to a retiree, particularly for the higher earner in a married couple. By using an income bridge to delay from 62 to 70, you are effectively "earning" or "buying" a guaranteed, inflation-adjusted return of roughly 8% per year — a return no bond or stock can guarantee. In effect, you are buying a fixed deferred inflation-adjusted annuity that is better than any annuity available on the market today. Getting a quote for a single-premium fixed-term annuity with a 3% cost-of-living adjustment will give you a rough idea of approximately what the commercial value is of deferring your Social Security until age 70 (or some other age like 68).

The example that was used in this article shows a couple aged 62 wanting to delay SS until age 70. But this can be easily adjusted to fit your particular situation. For example, if you are age 64 and want to delay until age 68 then you would only need a 4-year income bridge. A couple that is 65 and wants to delay until age 70 would need to create a 5-year income bridge. Even a couple with age disparities can use this strategy to enable the higher earner to delay SS. There is tremendous flexibility with this approach so it can be tailored to each household's specific situation.

By planning an “income bridge," you don't have to choose between retiring early or maximizing your benefits. You can cover today's needs while securing a higher, inflation-protected income for the rest of your life.

The Bottom Line

Delaying Social Security isn’t about "going without" — it's about planning smarter. With the right strategy, you can retire on your terms with a healthy income and build a more secure future. Learn more about the factors to consider in deciding when to claim Social Security here: "When Is the Best Time to Claim Social Security?"

At FlourishingPath Financial Coaching, I help individuals and couples design personalized income-bridging strategies so they can retire early and claim Social Security at the optimal time. Contact me or visit www.flourishingpathfinancial.com/book-online to schedule a free Discovery Session.

Author:  John Macy, MBA, RICP®

John Macy is a professional financial coach and the founder of FlourishingPath Financial Coaching. With over six years of experience as a financial coach, John helps pre-retirees and retirees design resilient portfolios and income streams for their next act. Read his full story here.