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Although you can start collecting Social Security at age 62, you can get much higher monthly payments if you wait as long as age 70. But many people want to or must retire before 70. If you're one of them, consider a possible strategy, backed by recent research, to use your retirement savings to put off receiving Social Security.
Build a Social Security Bridge
New research from the Center for Retirement Research explores retiree appetite for a "bridge" between retirement and collecting Social Security benefits, specifically one where retirees tap 401(k) assets in an amount equivalent to what they'd draw from Social Security on a monthly basis. This stream of payments would continue until age 70 or until the money ran out.
Such an option appealed to a good number of survey respondents; nearly 27% said they'd use it to some extent, even with minimal information about plan details. Among respondents provided with more information on the option, the total climbed to 35%. Researchers also propose a formalized "bridge" plan that employers could offer using 401(k) funds.
SEE MORE Feeling Insecure About Social Security? You're Not Alone.
But why tap those funds? The answer is that any chance to delay collecting Social Security benefits means you'll receive a larger monthly check when you finally do start to draw benefits.
How Much Can You Increase Your Social Security by Delaying Benefits?
As a rule, retirees must decide for themselves when to begin claiming Social Security benefits.
If they can wait to collect, though
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When you've just lost your spouse, you may be dealing with the loss of your life companion, your partner and best friend. It can be an overwhelming time, and it may be difficult to see a light at the end of the tunnel, to a day when you might feel better and brighter about your emotional and financial future.
In times like these, it can be comforting to hear from women who have been there and made it to the other side.
Every year, women who lose their spouse are able to start fresh, move beyond the immediate and uncertain aftermath of this time, and begin living new lives. Here's a look at how five of Francis Financial's clients were able to get back on track after losing their partners.
SEE MORE From One Widow to Another: Words of Wisdom for Hope and Happiness
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