I’ve read so many articles and watched so many videos about Social Security over the past five or six years. But the other night one YouTuber explained something in a way no one ever had before. 

He explained that people generally fall into one of two camps when it comes to starting to draw their Social Security. They either see it as an investment or insurance. All other things being equal, the way you view it will largely determine when you decide to begin taking your funds.

Social Security Investment

People who view Social Security as an investment are eager to get their money back. They view it as money they have invested into the scheme and they want it now. They are more apt to start drawing as soon as they hit 62.

Their greatest fear is that they will die before they get their fair share. They would rather get less, but make sure they get back what they’ve paid in all these decades.

Social Security Insurance

People who view Social Security as insurance tend to wait as long as possible before starting. Their goal is to get the monthly amount as high as possible. These people will wait until their full retirement age of 67 or even 70 to get the maximum amount possible. 

Their greatest fear is that they will need more money as they get older so they want as much of a financial cushion as possible. They are far more interested in getting a larger amount each month than getting it sooner. Their concern regarding not being able to pay their bills when they are too old and feeble to work makes them delay as long as possible.

This makes so much sense to me. Based on what I’ve observed in videos and comments, I think this is an accurate breakdown of the two broad camps. 

If you are receiving you Social Security, which camp best represents you? If you are planning for retirement, which mindset reflects where you are at the moment?