If You Invested Your Social Security Check, Here’s How Much More It Could Be Worth

PeopleImages / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Social Security is a reliable source of income for most retirees, but it doesn’t tend to provide as much money as the income you earned in your working years. What if you could make that monthly check work harder?

If you have other retirement income to cover living expenses, investing your Social Security payments could grow that money significantly. The potential growth depends on how long you invest and your chosen investment strategy.

The Starting Point

The average Social Security check in 2025 is $1,976 per month ($23,712 per year), according to the Social Security Administration (SSA).

For this analysis, let’s assume you can invest the full check without relying on it for daily living costs.

Short-Term Investing: 1-5 Years

Say you can only invest your check for a limited time, between one and five years. If you invest in the stock market or through high-quality bonds or money market funds, based on a very conservative estimate of 6% (the average stock market returns are more like 7% to 10%), you could expect to earn as follows:

• 1 year: If you contribute a full year’s worth of Social Security benefits, or $23,712, at a return of 6%, you could expect to have about $25,120 after one year, or a gain of $1,408.

• 5 years: If you contribute that same amount and invest it annually over five years, the power of compounding interest really works in your favor. You could turn your $118,560 investment into a $127,510 net, or a gain of $8,950.

Short-term investing should be about preserving and slightly growing your Social Security over generating a life-changing sum, as you’re likely going to need to tap this income soon. Also, be careful that gains don’t change your tax bracket significantly, which could incur taxes.

Medium-Term Investing: 10 Years

If you have the luxury of investing for longer, say 10 years, compounding starts to show noticeable results. Using a balanced 60/40 portfolio (60% stocks, 40% bonds), you could expect to see your money grow as follows:

• 10 years: Over 10 years you’d invest $237,120 of your own money and end up with $310,300, a respectable gain of $73,180. Even if you preferred to take fewer chances and go with bonds or a high-yield savings account instead, earning around 3%, you’d still net over $35,000.

Long-Term Investing: 20 Years

If you’re willing and able to invest for two decades, the power of compounding becomes dramatic:

• 20 years: Over two decades, you’d be putting in $474,240 of your benefit money and coming away with a whopping $714,800, a gain of $240,560.

Given that stock market returns are generally higher than 6%, you can see that any of these projections is probably under what you’d actually earn. And even if you elected for the safest, risk-free growth of a high-yield savings, you’d still see sizable growth for just putting your money into investments.

Important Caveat: Other Income Is Essential

This investing strategy would only work if you do not rely on Social Security for daily living expenses. If your check is covering rent, groceries or healthcare, investing it could make it unable to meet your basic expenses. Make sure you have other income streams — savings, pensions, part-time work — to cover day-to-day costs.

If you do have the means to make it happen, however, investing your Social Security can be a powerful supplement to other income, turning a predictable benefit into an engine for wealth growth.

Share This Article: