Delaying Social Security past full retirement age (FRA) increases your benefit through delayed retirement credits — generally about 8% per year up to age 70. That can translate into significantly higher lifetime income and stronger protection for a surviving spouse.
The tradeoff is straightforward: you need a plan to fund the “gap years” between retirement and when you start receiving benefits. That is where a well-structured Social Security bridge strategy comes into play.
Start With Your Income Floor
Begin with the income you can count on immediately. For many Feds, that includes a Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS) pension, net of deductions, and any other guaranteed income sources.
Once you know that baseline, the math becomes clearer. You only need the bridge to cover the remaining gap between your income floor and your monthly spending needs. For some, that gap is manageable. For others, it requires more careful planning.
Build the Bridge: Three Common Funding Lanes
Most Feds build their bridge using a mix of the following:
Lane 1: Part-time work. Even modest income early in retirement can reduce pressure on your portfolio and extend flexibility.
Lane 2: Thrift Savings Plan (TSP) withdrawals. Keep your TSP withdrawals aligned with the limited bridge window, not your long-term spending rate. The goal is to avoid turning a temporary strategy into permanent higher withdrawals.
Lane 3: Taxable or tax-free reserves. If available, these accounts can help you control when and how income shows up on your tax return, especially in years when TSP withdrawals would otherwise push you into higher tax brackets.
Keep Taxes From Eating the Bridge
Taxes can quietly undermine this strategy. Larger withdrawals in early retirement can push you into higher tax brackets and increase future Medicare premiums through income-related monthly adjustment amounts (IRMAA), which rely on a two-year lookback.
A more effective approach focuses on smoothing income year to year — rather than taking large, uneven distributions.
For some Feds, partial Roth conversions may fit into this window. Evaluate this approach carefully based on your situation. The key is to stay within targeted tax brackets and avoid creating unexpected Medicare surcharges or tax spikes.
For more details on how delaying benefits works, the Social Security Administration provides a helpful overview here.
Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer -
The Survivor-Benefit Angle
For married couples, this often drives the decision. When the higher earner delays Social Security, the surviving spouse receives a larger benefit.
That shift can provide meaningful long-term stability. Even when the break-even age seems far off, the survivor benefit alone can make delaying worthwhile for some households.
When Delaying to 70 May Not Fit
This strategy does not fit every situation. Certain Feds may find it does not align with their circumstances:
- Health concerns or a shorter life expectancy
- Cash-flow strain that requires large withdrawals or debt
- Discomfort with market volatility, especially without a cash buffer
If the bridge creates financial stress, it defeats the purpose.
Simple Guardrails That Make the Plan Workable
A few guardrails can make this strategy easier to manage.
Keep one to two years of spending in something stable, like cash or the G Fund, so you are not forced to sell investments in a down market. Check in on the plan each year — look at your spending, taxes, and how the market has treated your portfolio. Then adjust as needed instead of sticking to a plan that no longer fits.
A Smarter Way to Delay Without Creating New Risks
Delaying Social Security to 70 can increase your monthly income — but only if you can comfortably fund the years before benefits start. If covering that gap means pulling too much from your portfolio or stretching your cash flow, it may not be worth it.
For many Feds, this comes down to a simple question: can your pension and savings carry you without creating a bigger problem? If the answer is yes, delaying can make sense. If not, starting benefits earlier may be the more sustainable choice.
If you are evaluating whether to delay Social Security, reach out to the team at Serving Those Who Serve at [email protected].
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
