How to Value Your Social Security Benefit

What is the present value of a $2,521 Social Security benefit to a woman who starts receiving the benefit at age 66 and has those payments last until she passes away at age 90?

The answer is $412,896.

This figure likely surprises many people. 

The reality, though, is that $412,896 is the amount you would need to purchase an annuity--if, that is, an annuity like this actually existed--that offers the $2,521 payment. 

It is also important for people to understand that the $412,896 should be included as part of their net worth in their financial plan.

More information like this is available in an excellent article on Social Security.  The article was written by Gail Buckner who is a retirement and financial planning specialist at Franklin Templeton Investments.

Source: Financial Planning

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