The Prudential Financial Inc unit’s Income Bridge Approach illustrates different scenarios for increasing Social Security benefits while considering other sources of retirement income. Specifically, this is done by rolling over the appropriate amount of a participant’s defined contribution and Individual Retirement Account (IRA) assets into a period certain annuity, which will provide steadily increasing income from the day a participant retires to the day they receive delayed Social Security, according to a Purdential news release.
Using defined contribution or IRA assets to bridge to a higher initial Social Security amount, enables retirees to benefit from higher cost-of-living increases throughout their retirement, Prudential found. By utilizing this approach, Prudential says a participant can provide spousal protection and a higher amount of guaranteed income in the long run. Additionally, most retirees utilizing the Income Bridge Approach should experience lower annual expenses, lower taxes, and increased protection against running out of income, Prudential said.
The Income Bridge Approach is first being introduced to retirees in defined contribution plans serviced by Prudential Retirement.A future rollout to the retail market is planned.
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