Social Security recipients who have other income sources, such as a 401(k) or IRA, an annuity, or part-time work, are good candidates to invest some of their SSA dollars in the stock market.
There are multiple reasons to use some Social Security cash to buy stocks and funds, but mainly it comes down to timing and longevity.
According to the 2025 report of the SSA Trustees, the average retired-worker benefit is $1,976 per month. Meanwhile, Census Bureau data for 2024 shows the median life expectancy for those 65 and older is approximately 84.5 years, leaving over 18 years during which some form of inflation protection will be required.
The average annual Social Security Cost-of-Living adjustment for 2026 is 2.5 percent, historically lagging senior inflation as measured by CPI. “Consequently, a portion of monthly benefits invested in equities can preserve the retiree's real spending power,” Jere Salmisto, founder at CalcFi, a financial calculator services platform, told NTD News.
If a Social Security recipient relies solely on SS payments for retirement cash needs, the math doesn’t work out well for using those payments to buy stocks.
“If rent, food, and health care are handled by other income, putting a small slice into equities isn't reckless. It's a hedge against inflation outpacing the COLA,” Brian Lore, managing partner at Blue Valley Wealth, told NTD. “The average check is about $2,080 a month, though. For many people, there's just not much margin to work with.”
As there's no universal number that unlocks a Social Security recipient’s potential to invest in stocks, making the decision to use Social Security for market investing is a tough one—even for a financial adviser.
“Planners don't think of it as 'carve out X% of your check,” Lore noted. “They look at total income minus total expenses.”
Here Are the Best Ways to Use Social Security Cash for the Stock Market
If you have some financial wiggle room and can invest some of your Social Security cash, there are several solid ways to maximize the experience. In particular, these trading strategies should get the job done.Don’t use the entire Social Security check
It’s generally not advisable to use your entire Social Security check to invest in the stock market. In theory, Social Security checks are usually earmarked for staples like food, bills, and emergencies.You can, however, use a fixed percentage of your monthly paycheck to invest in the stock market.
Set it and forget it
Automate about 10 percent of your monthly Social Security payment and don’t overthink it.“I’ve seen people spend months trying to figure out the perfect amount and miss a year of investing in the process,” Ashley Akin, a CPA and tax consultant at TMGM, told NTD. “$150 a month going in consistently does more over ten years than most people expect.”
Use micro-investing platforms for easy, low-cost trading
Platforms like Robinhood, Webull, or Cash App are great for investors buying small or even fractional shares of stocks to gain market accessibility at lower costs than with a traditional stockbroker.“These platforms have made investing available to people who would never in a million years walk into a brokerage or hire a financial adviser,” Akin said. “For some people, the old ways of buying stocks felt completely out of reach.”
Watch Out for These Market Traps
Make sure to account for the major risks you need to be aware of before investing with Social Security cash.First up is market volatility. “It’s an obvious risk, yet many people are simply not prepared for the fluctuations of the stock market,” Akin noted. “Sometimes it goes up, and sometimes it goes down drastically and without warning. A retiree doesn’t have the time or the funds to recover from a bad year the same way a 30-year-old career professional does.”
A big second risk is what Akin calls the tax trap. “Many retirees don’t realize that if their combined income exceeds a certain threshold, up to 85 percent of their Social Security benefit can become subject to federal income tax,” Akin added.
As a Social Security-using market investor, your best path forward may be to start small and stay consistent. “Don’t be an investor with complicated investment schemes,” Akin advised. “If you don’t understand what you’re doing, you can learn a very expensive lesson. But if you invest correctly and with some reasonable patience, you can make a meaningful difference to your retirement bottom line.”