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?
2 Responses
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?
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!