When you hear the word “bridge,” you probably picture the Golden Gate or Brooklyn Bridge, not your retirement income. For federal employees, though, a bridge strategy can be a valuable way to help make sure you don’t outlive your money and to make better choices about when to start Social Security. A bridge strategy is just a plan for how you’ll replace income in the years before you begin receiving Social Security.
Rather than only asking, “When should I claim?” try asking, “How will I pay for my lifestyle until I claim, and how will that affect my long-term income?” This change in thinking is where real planning starts.
What Is a Bridge Strategy?
A bridge strategy is a way to cover your income needs from when you retire until you start Social Security. For many people, this bridge covers the years between age 62 and full retirement age, or even up to age 70 if you decide to wait longer.
Common bridge options include:
- Spending down your TSP or 401(k) in a controlled way.
- Using other savings or inheritance as a temporary income source.
- Purchasing an income annuity designed to pay you during those “gap” years.
There is no single solution that works for everyone. The best bridge strategy depends on your finances, how much risk you’re comfortable with, and your goals for income in retirement.
Why Delaying Social Security Can Matter
Many federal retirees want to get the most income over their lifetime, not just start payments as soon as possible. For example, if your Social Security benefit at age 62 is about 1,700 per month, waiting until age 67 could raise it to around 2,477 per month. That’s a big difference over the years.
This increase matters even more when you think about living longer. Years ago, dying at 65 seemed old, but now people often say, “That’s so young.” Because people are living longer, your income needs to last, and a higher Social Security benefit can help protect you from inflation and rising costs.
How Much Do You Really Need?
Consider how you really spend money in retirement. Hardly anyone tells their planner, “I want to cut my lifestyle by 40%.” But that can happen if you retire without a clear income plan and simply accept whatever Social Security provides.
For an average earner, Social Security can add up to tens of thousands of dollars each year, adjusted for inflation. This steady, inflation-protected payment is the foundation of your retirement income plan. The key is to coordinate it with your FERS pension, TSP, and other savings so you reach your target lifestyle, which is often about 70 to 80% of your pre-retirement income.
A Simple Example of Bridging
Here’s a simple example
- At age 62, your Social Security benefit might be about 1,700 per
- At age 67, it could be closer to 2,477 per month.er month.
If you decide to delay from 62 to 67, you need something to “bridge” that five-year income gap. In this example, covering that gap might take roughly 104,000 over those years, potentially drawn from your TSP or 401(k) as a planned, temporary income source.
By using some of your savings earlier, you are essentially buying a higher, inflation-adjusted Social Security benefit for later. For some people, this trade-off is worth it; for others, it may not be. Both the numbers and your comfort with the plan are important.
Beware of Emotional Social Security Decisions
Many people feel tempted to claim Social Security as soon as they are able:
- “It’s my money; I want it now.”
- “I’m worried Social Security will go bankrupt.”
Those feelings are understandable, but they don’t make a plan. While Social Security faces challenges, “bankrupt” doesn’t mean the program will disappear, and any changes are likely to happen gradually. The bigger risk for many retirees is locking in a lower benefit without realizing the long-term effects.
Rather than letting fear or advice from friends guide your decision, look at the numbers. Consider your life expectancy, your spouse’s benefit if you have one, your pension, your TSP, and your spending needs. Then decide if a bridge strategy fits your situation.
Managing, Not Just Moving: Your Next Step
A bridge strategy isn’t about moving to a new state or finding the perfect age to claim benefits. It’s about managing your resources so your income supports your lifestyle for as long as you need it. That could mean:
- Intentionally drawing from your TSP earlier to boost lifetime Social Security.
- Coordinating your FERS pension, Social Security, and savings so you don’t face a sudden income drop.
- Stress-test your plan against longevity and inflation so you do not outlive your money.
The decision of when to claim Social Security is ultimately yours, but it should be made with clear numbers and a strategy, not TikTok advice or breakroom chatter. The right approach starts with understanding your numbers and coordinating all pieces of your retirement plan.
Floyd Shilanski (00:00)
If you and I were talking face to face and I said, have you ever thought about the bridge strategy, what would come to your mind? San Francisco, Golan Gate Bridge, Brooklyn Bridge? Are you sure? Well, that’s not what I’m going to talk to you about today. I’m going to talk about using bridge strategies before you file for social security. This is Floyd, standby. You know, many retirees can improve their protection against living longer and expected bridge strategies. uh, find
Ways to maybe delay claiming social security, not to say that you should, but maybe delay that. And one option is to spend down the 401k or spend down your TSP While other retirees may purchase income annuities or draw on their inheritances. The key question here is what’s right for you? Don’t let anybody, including myself, listen to this podcast and say, that’s exactly what I want to do. Make sure you’re talking to an advisor, making sure you’re talking to someone that understands your position.
all right, your financial position to help you make these smart decisions. Whatever strategy that you think you want to claim, which is fine, but we want to look at maximizing your income. That’s my opinion. So if you have an income today of $2,200 here in 2025, and you want to maximize that benefit by delaying starting social security at date 70 versus 62 or 65 or 67, that benefit over time can be substantial.
So we believe that longevity risk for our retirees is really different today than when it was. I remember when my grandmother passed away at age 65, she had led a long, long, hard life. And when you hear people dying today at 65, what do you say? Man, that’s awful young. So rethinking that strategy sometimes. There was a reel recently on one of the social medias that says when you get ready to retire, take your net worth and divide it by 280 paydays, because that’s what you really have to spend.
Interesting concept. Math is pretty close, but is that all you want? So using a bridge strategy could help you adjust to the cost of living, the inflationary trends that take place today. And the big thing is not allowing someone to say, is the only way to do something. And many times I get in these arguments when someone turns age 62, I got to have my social security. Why? It’s mine. I want my money. Number two, what’s the other reason? Well, we’re afraid it’s going to go bankrupt.
Well, that’s possible, but what’s the definition of bankruptcy? Inability to pay your bills. Well, that’s social security. Not quite. They’re going to fix that one-way shape or form, I believe. That’s my opinion. So making sure we coordinate. Let it run the numbers. Just make sure you know exactly how much money you’re going to get. Historically, averagely, on the medium earner, not the high-income earner, not the low-income earner.
Social Security is going to provide about $66,000 a year. Then it’s adjusted for inflation for a number of periods of time. But we would anticipate that during your working years with inflation, you’re going to get an average of about $5,000, $5,019 a month. Now, assuming the generous target income replacement rate of about 80 % of your income that is needed, and understand something, this is exactly right. In my 40 some odd years of doing financial planning, I’ve never had a client say,
I want to take a 40 % reduction to my spending. They’ve looked at me said, that’s all I’m going to have. So planning is paramount and social security should be part of that. 40 years ago, we didn’t plan on social security. Didn’t think it’s going to be around. Now that I’m drawing social security, now that I’m advising people drawing social security, I’m going to hope it’s going to be around. So I think that’s very, very, very important. So my recommendations is to consider the bridge strategy. So instead of claiming social security upon retirement,
which would roughly $1,700 a month. my example here, if you delayed until you reach full retirement age at 67, that would be 2,477 bucks. Pretty substantial increase. So looking at funding between 62 and 67 would require roughly $104,000. And then we draw that down by the taking money out of the TSP, out of the 401k plan at retirement. The bottom line,
The decision to claim or not claim is basically up to you, all right? And don’t let friends and neighbors and TikTok and so on tell you which one to do. Find an advisor, sit down with them, make sure they understand what you want and need. Devise a strategy to help you do that. And if you’re looking for advice, planyourfederalretirement.com, log on and ask to speak to one of our advisors and we’ll be happy to go through this basics with you. This is Floyd, until next time, happy planning.