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A14 BUSINESS
Wednesday 8 February 2023
Liz Weston: ‘Bridge’ your way to Social Security

By LIZ WESTON “The higher monthly ben- inched up between 2008
of NerdWallet efit means you have more and 2018, from 63.6 to 64.7
Delaying the start of Social guaranteed income, which for men and from 63.6 to
Security benefits is a power- will last you for the rest of 64.6 for women, according
ful way for retirees to cope your life,” Wettstein says. to the Social Security Ad-
with inflation, survive bad (By the way: Your Social Se- ministration. Most people
investment markets and re- curity benefits begin earn- still claim their benefits be-
duce the risk they’ll run short ing inflation adjustments fore reaching their full re-
of money. The advantages starting at age 62, whether tirement age, which means
of waiting are so great that you’ve started receiving their benefits are perma-
financial planners often them or not, according to nently reduced.
recommend their clients the Social Security Adminis- FEW RETIREMENT PLANS HELP
tap other savings, such as tration. WITH PAYOUT STRATEGIES
retirement funds, to help So next year’s 8.7% cost of Many employers provide
them delay claiming. living increase is no reason matches to encourage
Employers could increase to speed up your applica- people to accumulate
their workers’ financial se- tion if you’re able to hold money for retirement, but
curity by offering a similar off.) few help with payout strate-
“bridge” strategy as part MOST PEOPLE ARE STILL gies when it’s time to retire,
of 401(k)s and other work- CLAIMING TOO EARLY Wettstein notes. A few of-
place retirement plans, Copious research has fer the option to annuitize,
according to a study by shown that most people which means turning some
the Center for Retirement are better off waiting to or all of the account bal-
Research at Boston Col- claim Social Security. It’s ance over to an insurance
lege. The bridge strategy particularly important for company in exchange for
would tap a worker’s re- the higher earner in a mar- a guaranteed stream of
tirement account to pay This undated file photo provided by NerdWallet shows Liz Weston, ried couple to delay, since payments.
amounts roughly equal to a columnist for personal finance website NerdWallet.com. that benefit determines Most people don’t much
the foregone Social Securi- Associated Press what the survivor gets after like the idea of giving up
ty checks. People can cre- the first spouse dies. big chunks of their savings,
ate such bridges on their and co-author of the study. full retirement age, which is A study by economists from Wettstein notes. His study
own, of course. If Social Se- THE BENEFITS OF WAITING currently between 66 and the Federal Reserve and presented an alternative
curity projects your benefit ARE HUGE 67, typically means settling Boston University found that the employer-provided
at age 62 will be $1,500 a Social Security benefits are for a permanently reduced “virtually all” U.S. workers bridge to a nationally rep-
month, for example, you incredibly valuable to retir- benefit. Delaying beyond ages 45 to 62 should wait resentative sample of 1,349
could set up automatic ees. Benefits are adjusted full retirement age, by con- beyond age 65 to claim, people ages 50 to 65 who
monthly withdrawals of that annually for inflation and, trast, increases retirement and 90% should wait un- had not retired and who
amount from your 401(k) unlike retirement savings, benefits by 8% each year til age 70, although only had at least $25,000 in their
at retirement. But having can’t be depleted by bad until your benefit maxes out about 10% currently do. 401(k).
an employer offer the op- markets, bad investing de- at age 70. Claiming too early will cost The strategy would allow
tion could make the pro- cisions or bad luck. Waiting until age 70 can the typical worker over participants to use up to
cess easier and encourage People can claim Social increase your Social Secu- $182,000 in lifetime dis- half of their retirement ac-
more people to delay, says Security retirement benefits rity checks by at least 76% cretionary spending, the count balances to replace
Gal Wettstein, the center’s at any time from ages 62 compared to starting at 62, economists found. Social Security checks while
senior research economist to 70. Starting before your Wettstein says. The average claiming age they delayed claiming. q

AMC to charge more for good seats in movie theaters

By JAKE COYLE AP Film end of the year, will be in Last weekend, Paramount
Writer place at all domestic AMC Pictures partnered with
NEW YORK (AP) — Middle theaters during showings theater chains to offer
seats at many U.S. movie after 4 p.m. Seats classi- slightly reduced ticket pric-
theaters just got more ex- fied as “standard sightline” es for the comedy “80 for
pensive. AMC Theaters, will be at the regular price. Brady.” And last year, dur-
the nation’s largest movie If you want to pay less for ing a dry spell in theaters,
theater chain, on Mon- the “value sightline” seats, tickets at most movie the-
day unveiled a new pric- you have to be a member aters were $3 for “National
ing scheme in which seat of the chain’s subscription Cinema Day.”
location determines how service, AMC Stubs. But in most circumstances,
much your movie ticket As movie theaters have at- movie tickets are getting
costs. Seats in the middle tempted to recover from more expensive, especial-
of the auditorium will cost the pandemic, exhibitors ly when factoring in large-
a dollar or two more, while have increasingly looked format screens and 3D
seats in the front row will be at more variable pricing showings. The average 3D
slightly cheaper. methods. That’s included premium format ticket for
AMC said the pricing plan, charging more for sought- the biggest box-office hit in
dubbed “Sightline,” has after movies like “The Bat- recent years, “Avatar: The
People walk by the AMC 34th Street theater on March 5, 2021, already been rolled out in man” in their first week of Way of Water,” was about
in New York.
Associated Press some locations and, by the release. $16.50.q