Using Savings to Land a Larger Social Security Benefit

"Do not claim Social Security until you're 70" is one of the most repeated pieces of advice regarding retirement. For each year you delay claiming benefits past your full retirement age (FRA), your monthly Social Security benefit increases by about 8%, in addition to annual cost-of-living adjustments (COLAs). If you're hoping to maximize your Social Security benefits, waiting until age 70 means locking in an inflation-protected stream of income for life.

Despite that oft-repeated advice, a recent survey from the investment firm Schroders revealed that only 8% of working Americans plan to wait until age 70 to collect their first Social Security check. Reasons for collecting Social Security before age 70 range from health issues to job loss. While each is a legitimate concern, there is one potential method of postponing Social Security until you're guaranteed the largest monthly benefit. It's called the Social Security bridge strategy, and it may be worth your consideration.

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Here's how the strategy works

The idea behind the bridge strategy is to use retirement savings (including funds from your retirement plan) to carry you to age 70. Rather than file for Social Security benefits earlier, you use resources you've built elsewhere to tide you over until your Social Security checks are as big as they will ever be. Those resources can be from anywhere, including savings, an annuity, a bond ladder, rental income, or selling something of value, like a piece of land. It doesn't have to be enough to carry you through the rest of your life; just enough to get you to 70.

A tough sell

David Johnston, a certified financial planner and partner at OnePoint BFG Wealth Partners, told AARP he understands why some might balk at drawing down the money they've worked so hard to save. Maybe they're worried about spending so much that they'll deplete their emergency savings account, or don't want to spend assets they planned to leave to loved ones.

While people may have natural concerns, Johnston says that a growing number of financial planners and policy analysts are urging people nearing retirement to think of those savings vehicles -- like 401(k)s, IRAs, and other investments -- in a new light. Rather than consider them assets they'll only touch when forced to, think of them as funds they can lean on during their first years of retirement.

The average life expectancy for an adult in the U.S. who reaches age 65 is approximately 83 for men and 86 for women. If you adhere to the bridge strategy, you may indeed spend more money early in retirement than expected, but if you live to 83 or 86, receiving a larger monthly Social Security payment could reduce your need to tap into savings later in retirement.

Concerned about cuts to Social Security?

A record number of people filed for Social Security in the first half of 2025. It's not just the tail end of Baby Boomers hitting FRA. Many of those who've filed claims have done so because they no longer trust that Social Security will be there for them when they reach FRA.

If Congress doesn't take action to shore up the program, the latest annual report from Social Security's trustees projects the program's trust fund will run short in 2034. A dried-up trust fund doesn't mean Social Security benefits would discontinue entirely, but they would be cut by an estimated 19%.

For retirees who count on the funds, a 19% cut could be devastating. While Emerson Sprick, director of retirement and labor policy at the BPC, told AARP he's confident lawmakers will act to avert a shortfall, everyday Americans seem less convinced.

Math in favor of waiting

Even if you're concerned that the Social Security trust fund will run dry by the time you're ready to collect benefits, the math indicates that waiting until age 70 to file may provide you with a greater guaranteed income no matter what happens.

Let's say you retire at 67 with a $2,000 monthly Social Security benefit. A 19% cut would reduce your monthly check to $1,620. If you wait to file until age 70, your monthly check would be $2,480. Even if benefits are cut by 19%, that would leave you with $2,009.

The truth is that any suggestions about when to collect your first Social Security check are just that -- suggestions. Using cash to cover expenses as you wait to turn 70 may be the best solution to your financial puzzle, but it's not for everyone. If you're ill, laid off, or don't have other sources of money to draw from, it's possible that your best move is to file earlier than expected. There is no one-size-fits-all solution.

Still, the Social Security bridge strategy is an idea worth considering.

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