Social Security Benefits are an Asset

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Day in and day out, we see middle income married couples with an aggregate cumulative Social Security benefit, through life expectancy (85 for men and 88 for women), well over a million dollars as a combined asset. When we show this analysis to our clients, they are in awe as they never knew their benefit to be worth so much. Taking this into consideration, why aren’t people finding out ways to maximize what is their most valuable retirement tool?

Money in general, and more specifically Social Security benefits, tend to evoke very emotional reactions. People want to draw as soon as possible because they don’t want to be subsidizing someone else’s retirement without seeing the benefit for themselves. This fear of missing out often leads to an erroneous investment mindset about Social Security. Retirees with this mindset truly believe that maximization comes from drawing early instead of reviewing what options are available. As we share in our seminars “people are more concerned about dying early, than living too long”. By drawing early, you would have to die before reaching your break-even point to win financially. This does not seem like a good way to maximize an investment.

People also have very good intentions, that usually go by the wayside – they will say “I will go ahead and draw early and invest that money”. This kind of thinking ignores the reality of investments, specifically risk and the volatility of investments; also the fact that LIFE happens and that money does not always end up where you had intended it to go. Because of inflation, money loses value over time. Putting your Social Security checks in conservative investments such as CD’s, Treasury Bills and savings accounts is one of the riskiest things to do – yes, your principal is protected, but the buying power of your money will be eaten away by inflation.

So, let’s look at your Social Security benefit – there is no volatility, it includes Cost of Living Adjustments to ensure the buying power of your benefit, it has the right of survivorship, and for every year you wait to draw your benefit after full retirement age, you will be rewarded with an 8% increase per year. Treating your Social security in the terms of protection versus profit, is a much better way to look at this asset.

Pillars LLC is in the Corinth, MS area but service all 50 states. Roy and Diane are both National Social Security Advisors and Roy is a former CPA of over 40 years. You may contact them at, on their website at or call at 601-954-0699. KNOW before you GO!!