Your Social Security Is Your Wealth

      From the New York Times:

Social Security is the most valuable thing most Americans have.

I don’t mean this in an abstract sense. In purely financial terms, the Social Security check that you are getting now or have a right to receive when you are older is your most valuable financial asset.

That statement is true for nearly everyone except those in the top 10 percent of the wealth distribution in the United States. And for people right in the middle, Social Security amounts to roughly one-third of their total wealth, on average, according to an eye-opening study by the nonpartisan Congressional Budget Office. …

The budget office report, “Trends in the Distribution of Family Wealth, 1989 to 2022,” found, in fact, that Social Security amounted to roughly 20 percent of the $199 trillion in total wealth of all American families in 2022. Social Security, in other words, was worth about $40 trillion to Americans in 2022.

For the median family, it found that Social Security accounted for about one-third of total wealth, more than the value of cars or homes, retirement accounts, whatever. On average, the wealth of people right in the middle added up to $504,000, the study estimated. …