Which option describes a RIG that delays Social Security to increase total retirement income?

• A. Systematic Withdrawal Plan (SWP)
• B. Guaranteed lifetime annuities
• C. Temporary payout from plan assets that delays Social Security
• D. QLAC

Answer: (C)

The idea being tested is a bridging approach: use a temporary payout from plan assets to cover living expenses now, while delaying Social Security to a later age to boost the lifetime benefit. By drawing on plan assets for the early years, you avoid taking Social Security early and lock in a higher Social Security benefit when you do start it. Since Social Security increases are earned by delaying claiming (up to age 70), this strategy can lift the total amount of retirement income you receive over your lifetime, especially if you live long and the delayed benefits compound.

Compared with other options, this approach is specifically about coordinating withdrawals from existing assets to bridge the gap until Social Security kicks in at a higher level. A systematic withdrawal plan is just a way to take funds from assets and doesn’t inherently align withdrawals with delaying Social Security. A guaranteed lifetime annuity provides steady income but doesn’t leverage the Social Security timing increase. A QLAC can provide later-life income funded from pre-tax assets, but its primary feature is longevity protection rather than the explicit bridge that delays Social Security to maximize total income.