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Home›Expert Advice›5 Alarming Social Security Reduction Factors You MUST Know About

5 Alarming Social Security Reduction Factors You MUST Know About

By Our Editorial Team  |  Published October 5, 2023

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Our editorial team verifies all financial and lifestyle information for accuracy and relevance to senior living.

Social Security Reduction
Photo by JLco Julia Amaral at Shutterstock

Social Security reduction factor: Use Social Security as a future-loan program

Social Security benefits may also be used as a loan program today that can reduce payouts in the future, which is the basis of a recently introduced Republican plan.

The Economic Security for New Parents Act allows parents to use future Social Security benefits to take extended leave following the birth of their child.

Theoretically speaking, this would take the burden of paying for this break off of the employer and provide a new source of income for new parents.

In return, individuals using this “loan” would be required to wait longer to obtain their retired worker benefits when they get to their claiming age.

When considering this Social Security reduction factor, among the numerous issues is that it would reduce the lifetime benefits of those who took advantage of extended leave. A close analysis found that a single 12-week leave could reduce lifetime benefits by 3%.

Four 12-week absences would reduce lifetime payouts by 10% for a family with four kids. Is it really worth it?

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13 responses to “5 Alarming Social Security Reduction Factors You MUST Know About”

  1. edith says:
    April 5, 2024 at 5:13 pm

    Are you fear mongering? Are you a senior! you know this first hand? Do you have a solution? If Not why are you scaring senior. You will be senior like it or not? Are you prepared?

    Reply
  2. edith says:
    April 5, 2024 at 5:22 pm

    you or such a hateful person to scare old people? What is wrong with you? out of ideas for article? Or you just a Democrate. They were the first one to try to take ss away? Tell the truth Be sure old people know this.It will last until you need SS and then gone? What will you do? better get rich quick!

    Reply
    • Robert says:
      April 7, 2024 at 7:15 pm

      It’s never been democrats that try to get rid of your social security their the ones that greated social security it’s the traitors that call themselves patriots and republicans that want to take your social security. Franklin Delano Roosevelt was the president that gave us social security a democratic president. And your republicans have been trying to get rid of it for one reason, they want to make the billionaires they work for get that money so that those billionaires can help them get richer and stay in power in Washington. People learn history so you don’t get your mind living on right wing lies.

      Reply
    • Christine says:
      April 20, 2024 at 2:32 pm

      Edith,
      You immediately went to the political jibe. If you are a senior now, chances are you were part of the “Woman’s Lib,” “Free Love”, mind-expanding through drugs, etc., etc.,
      Channel that inner peace, and become part of the SOLUTION!

      Reply
  3. Trump Traitor says:
    April 7, 2024 at 11:38 am

    Trump the traitor

    Reply
  4. FRANK L BYRD says:
    April 7, 2024 at 12:06 pm

    Would it help solvency if the government were to repay the amount it has borrowed from the fund?

    Reply
  5. Joe Blow says:
    April 7, 2024 at 5:52 pm

    there is no “next” to click

    Reply
  6. Lisa BROWNE says:
    April 10, 2024 at 2:23 pm

    If the government would stop putting their hand in Social Securities till, most of these problems would go away….I paid my whole life into this program….it is a no brainer….it is my money!

    Reply
  7. Sharon Lee Slauter says:
    December 11, 2024 at 2:36 pm

    Thanks for the info. I am 75 now. do you think I will be affected by all any of these solution?

    Reply
  8. Virginia T Heard says:
    December 13, 2024 at 3:12 am

    I did not notice in the plans where Congress plans to repay what they have “borrowed” through the years and not repaid. Biden/Harris recently tapped MEDICARE like it was their personal piggy bank for one of their pet projects !!!! Maybe #1 concern: PROTECT FROM POLITICIANS !!!!!!

    Reply
  9. John (Sean) Francis says:
    February 2, 2026 at 6:04 am

    these provisions they’re considering should’ve been acted upon decades ago instead of waiting till the 11th hour to do anything about the situation! Furthermore, the fact that they didn’t lift the current ceiling on the income limit to tax higher income earners for their fairer share of SS taxes is just plain ineptness at it’s finest! And finally, instead of conniving ways to cut corners on the low income threshold portion of income earners by targeting the SS recipients, why aren’t we hearing more about cutting into these ridiculously high pension plans, and especially the ones that congressman get handed to them just for completing one term of office?!

    Reply
  10. Faye Long says:
    February 2, 2026 at 6:12 pm

    Quit “Borrowing” from SS and pay back what was taken out.

    Reply
  11. FELong says:
    February 2, 2026 at 6:14 pm

    Yes we are living longer but there are too many people getting SS that should not be!

    Reply

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