How to Bridge Income in Early Retirement Until Social Security Starts

Early retirement sounds simple until you realize you have to fund the “gap years,” the stretch where your paycheck is gone but Social Security has not started. That gap is where a lot of plans break, not because people did anything reckless, but because the bridge was never built on purpose.

A solid bridge income early retirement plan does one thing well: it turns your savings, part-time income, and timing choices into a predictable monthly paycheck, without forcing bad decisions when the market or expenses get messy.

Choose your Social Security start date, then size the gap in real dollars

Before you touch your investments, lock in the age you want Social Security to start. Delaying benefits past full retirement age increases the benefit, and the increase stops at age 70. (Source: Social Security Administration)

If you expect to work part time while claiming benefits, make sure you understand the retirement earnings test. In 2026, the exempt amount is $24,480 for people under full retirement age, with $1 withheld for every $2 earned above the limit. In the year you reach full retirement age, the exempt amount is $65,160, with $1 withheld for every $3 above the limit, counting only earnings before the month you reach full retirement age. (Source: Social Security Administration)

Once you pick your claiming age and work plan, the gap becomes math: your monthly spending minus any predictable income equals the monthly bridge you must create.

Treat withdrawals like payroll, because the first years are the danger zone

Early retirement has a timing problem. When withdrawals start, the order of market returns matters more, because you are pulling money out while the portfolio is trying to grow. One useful way to frame it is that the real risk shows up through withdrawal behavior during down markets, not just the market itself. (Source: Capital Group)

That is why a bridge plan should feel boring. Morningstar’s retirement income research for 2026 estimates a 3.9% starting “safe” withdrawal rate for a 30-year retirement under its assumptions, which is a helpful reality check for people who assume 4% is always fine. (Source: Morningstar)

The practical takeaway is to build a paycheck-like withdrawal rhythm and give yourself flexibility. If markets are rough, you want the option to lean more on part-time income, cash reserves, or spending adjustments, instead of selling investments at the worst time.

Price healthcare into the bridge plan early, not after you retire

Healthcare is one of the fastest ways to break a bridge plan, because it hits your cash flow and it is hard to predict perfectly. Even for people retiring at 65, Medicare costs still matter month to month.

For 2026, the standard Medicare Part B premium is $202.90 per month and the Part B deductible is $283. (Source: Centers for Medicare and Medicaid Services)

If you are retiring before 65, the key move is to map your health coverage cost for every gap year, then stress-test your budget with a higher number than you want it to be. When people skip this step, they usually end up pulling more from investments than planned, which makes the bridge shakier right when it needs to be strongest.

When a “temporary paycheck” tool can reduce stress

Some people want the bridge to feel like steady income, not constant monitoring. Guaranteed income tools can help with that, especially when the goal is to delay Social Security for a higher benefit or to reduce pressure on the portfolio.

LIMRA research has found that while many investors recognize annuities can help reduce the risk of outliving assets, fewer than 1 in 5 pre-retirees and retirees own one. (Source: LIMRA)

The warning label is complexity. FINRA has flagged that some annuity categories and features can be complicated, so suitability and understanding the product’s moving parts matters. (Source: FINRA)

If you explore an annuity bridge, keep the goal narrow: cover a defined number of gap years, keep costs clear, and avoid features you cannot explain in plain English.

The bridge years can be smooth, but only if the plan is built for real life: your Social Security timing, your healthcare costs, and a withdrawal approach that does not panic when markets get weird. If you want help modeling your bridge income options and stress-testing the numbers, SLD Solutions can walk you through retirement planning strategies and help you map a confident path from early retirement to Social Security.

Start your journey with SLD Solutions.

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