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Mon May 11, 2020, 11:13 PM

Trump may let workers take Social Security benefits early in exchange for reduced payments later

Source: MSN

One proposal the White House is reportedly considering calls for letting Americans take up to $5,000 from Social Security now in exchange for delaying their benefits in the future.

The $5,000 would be structured as a loan with a government-set interest rate that would reimburse the Social Security trust fund with interest. Individuals who opt into the program would pay that money back when they start collecting Social Security benefits. Their first checks would go toward repaying the loan, for a period of up to three months. After that, they would receive normal benefits.

The plan was developed by Andrew Biggs of the American Enterprise Institute and Joshua Rauh of the Hoover Institution at Stanford University.

Social Security advocates fear this could be the beginning of efforts to curtail the program. Currently, about 45 million retired workers depend on Social Security, with average monthly benefits totaling $1,503. In a statement, Richard Fiesta, executive director of the Alliance for Retired Americans, slammed the proposal. “Asking working Americans to give up even one dime of their future Social Security benefits to survive today’s economic crisis is a harebrained idea that would hurt families for decades to come,” Fiesta said.

Read more: https://www.msn.com/en-us/money/retirement/trump-may-let-workers-take-social-security-benefits-early-in-exchange-for-reduced-payments-later/ar-BB13Vzho?ocid=hplocalnews



Of course, Trump would try to extort Americans in a time of crisis. Give up social security in return for $5,000 to get you by for rent and food for a few months. I can see why Trump is drawn this loan shark type proposal.

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Reply Trump may let workers take Social Security benefits early in exchange for reduced payments later (Original post)
TomCADem May 2020 OP
BamaRefugee May 2020 #1
Skittles May 2020 #4
TreasonousBastard May 2020 #2
Cicada May 2020 #3
House of Roberts May 2020 #5
Cicada May 2020 #23
Hoyt May 2020 #6
PSPS May 2020 #7
Tactical Peek May 2020 #8
LudwigPastorius May 2020 #9
progree May 2020 #10
msongs May 2020 #11
dawg day May 2020 #12
progree May 2020 #13
roamer65 May 2020 #14
yaesu May 2020 #15
LastLiberal in PalmSprings May 2020 #16
yellowcanine May 2020 #26
cstanleytech May 2020 #17
BigmanPigman May 2020 #18
Traildogbob May 2020 #20
rainin May 2020 #19
duforsure May 2020 #21
honest.abe May 2020 #22
keithbvadu2 May 2020 #24
McCamy Taylor May 2020 #25
yellowcanine May 2020 #27
DeminPennswoods May 2020 #28
llmart May 2020 #29
Yo_Mama_Been_Loggin May 2020 #30
Aristus May 2020 #31
sarcasmo May 2020 #32

Response to TomCADem (Original post)

Mon May 11, 2020, 11:16 PM

1. ANYONE who falls for this is INSANE. Trust me, I would never in my life have thought Social Security

would ever be important to me, but life takes strange twists and now it's pretty much a CRUCIAL part of simply staying afloat.

This plan is just the foot in the door to take Social Security away from everyone.

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Response to BamaRefugee (Reply #1)

Mon May 11, 2020, 11:33 PM

4. Trump INC thrives on fear

they know that desperate people will do foolish things

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Response to TomCADem (Original post)

Mon May 11, 2020, 11:20 PM

2. But don't we already do that? And worse? You can collect SS at 62 and get reduced benefits forever.

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Response to TomCADem (Original post)

Mon May 11, 2020, 11:27 PM

3. If I faced foreclosure I would want this option

Also some people will get social security of say $900 per month. They get $5000 but only pay back $2700. Also some people may not expect to live long enough to get social security. They win.

I favor more stimulus payments with no obligation for pay back. But getting $5000 for delay of 3 months social security years from now sounds ok to me.

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Response to Cicada (Reply #3)

Mon May 11, 2020, 11:37 PM

5. I read this as they can only get three months of whatever benefit they would qualify for later.

If it adds up to less than $5000, then that's their ceiling.

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Response to House of Roberts (Reply #5)

Tue May 12, 2020, 06:08 AM

23. The payback is at most 3 months benefits

After they take 3 months of benefits if your loan has not been paid back in full then your loan is cancelled. That seems to be what is proposed. So this benefit is a winner for those whose soc security benefits are less than $1667 per month.

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Response to TomCADem (Original post)

Mon May 11, 2020, 11:42 PM

6. Not for this, but the option might help some. I'd prefer other solutions, but there is

no guarantee other solutions will pass.

Essentially one could work an extra 3 months — to what they otherwise would — to come out sort of even (assuming things have improved years from now). And future changes to law could negate negative impacts, if we elect Democrats.

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Response to TomCADem (Original post)

Mon May 11, 2020, 11:42 PM

7. LOL. "plan developed by the American Enterprise Institute and the Hoover Institution" -- PASS!

Taking out a loan on your future SS benefits is no better than using your house as an ATM. Either way, you're heading for eating cat food for dinner in the front seat of your new "house."

Here's a better idea: Just pay everyone a $2,000 monthly stipend for now and make the rich pay some taxes for a change.

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Response to TomCADem (Original post)

Mon May 11, 2020, 11:43 PM

8. American Enterprise Institute? Hoover Institution?



Say, I know who they are and what they want.


Fuck this camel nose under the tent shit!

Why not just pay people $5,000 over two or three months? Just think of people as tiny banks who need a bail out from the government, maybe then it won't seem so hard to imagine.

Hands off Social Security, you bastards!



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Response to TomCADem (Original post)

Mon May 11, 2020, 11:45 PM

9. President Usurer

I guess, in the midst of this pandemic, the elderly aren't dying fast enough for him to shore up the Social Security Trust Fund.

Got to coerce high interest out of people desperate to eat and pay for their meds & rent...

Trump is beneath contempt.

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Response to TomCADem (Original post)

Mon May 11, 2020, 11:46 PM

10. Camel's nose under the tent. Yeah, at first it will just be $5,000. Hoover Inst and AEI, hmm.

Last edited Tue May 12, 2020, 12:47 AM - Edit history (2)

then pressure will mount in the future to up it to $10,000. Then $25,000, and so on and so on. Pretty soon you'll be able to borrow half or more of it away for any government-approved "good" purpose. And that list of good purposes will expand and expand.

I like Social Security the way it is -- it's for old age retirement and disability, and people can't borrow it away. Human nature being what it is, too many people would be borrowing too much from it and leaving themselves way short in old age or if disabled.

And the people who will be most hurt by this will disproportionately be the ones who need their Social Security income the most.

If we want a piggy bank that people can borrow from at any age, fine, but that should be a completely separate program.

Another great feature of Social Security the way it is, is the very low administration cost (2% IIRC). But if we start allowing borrowing, and then we have hardship cases, and then we get into HARP-style loan modifications and all the paperwork involved in that, no thanks.
Social Security should be Social Security, a social INSURANCE program. Not a fucking mortgage company.

The plan was developed by Andrew Biggs of the American Enterprise Institute and Joshua Rauh of the Hoover Institution at Stanford University.


More evidence that it is a lousy idea. And by the way, anybody who thinks these organizations will be content with allowing just $5,000 of borrowing from S.S. is unarguably a complete fool.

Yes, I'm aware that people can opt to retire at 62 (or 63, or 64 etc.) in exchange for reduced lifetime monthly benefit amounts. But at least it's saved for old age, just 4 or 5 years earlier. And at least its a stream of monthly income, not what probably will evolve into an irresistibly tempting large lump sum. Whatever. That this option exists shouldn't be used as an excuse to justify more borrowing from the future (or just plain taking from the future). This illustrates how any opening can be used to justify a further opening.

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Response to TomCADem (Original post)

Mon May 11, 2020, 11:54 PM

11. DIVIDE & Conquer - peel off support from dems based on fear and desperation nt

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Response to TomCADem (Original post)

Mon May 11, 2020, 11:59 PM

12. This is like Bush's "privatize Social Security" trial balloon

Even Trump-voting seniors aren't this stupid.

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Response to dawg day (Reply #12)

Tue May 12, 2020, 12:05 AM

13. Yes, just start with a small part of it in a private account. As the years go by those limits will

be raised until eventually it becomes 100% privatized. The camel's nose under the tent strategy.

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Response to TomCADem (Original post)

Tue May 12, 2020, 12:07 AM

14. House won't pass it. DOA.

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Response to TomCADem (Original post)

Tue May 12, 2020, 12:55 AM

15. that dog won't hunt. nt

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Response to TomCADem (Original post)

Tue May 12, 2020, 01:33 AM

16. Can he do this? It seems like any change to SS would take Congressional action.

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Response to LastLiberal in PalmSprings (Reply #16)

Tue May 12, 2020, 07:49 AM

26. No, and yes it takes Congressional action. Trump would nowhere near have the votes for this kind

of change.

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Response to TomCADem (Original post)

Tue May 12, 2020, 02:02 AM

17. Its a shit sandwich of a proposal. nt

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Response to TomCADem (Original post)

Tue May 12, 2020, 02:48 AM

18. But what if...

Someone dies or some one knows they are going to die before they are able to collect their fair share years down the road, they can collect it now and use it? This seems to good to be true for people in this group and their families who could use the help with expenses now (especially medical ones).

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Response to BigmanPigman (Reply #18)

Tue May 12, 2020, 03:25 AM

20. Nonsense

Give people that pay taxes a half trillion dollar non-traceable gift, not a loan, and let CEO’s and cruise ships borrow from their social security. Oh wait, they don’t pay into that either. Do not drain the trust fund now for seniors receiving their lifelong contribution and give to very young people who have paid almost nothing in, and yes, may die and never contribute the ‘Payback’ later. The half trillion giveaway to rich could have given 5,000 a month for many months to actual tax payers.

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Response to TomCADem (Original post)

Tue May 12, 2020, 03:19 AM

19. Giving to the rich through lowered taxes

and loaning to the poor and desperate. Republicans are evil and cruel. Their only objective is to make people so poor they will work for almost nothing

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Response to TomCADem (Original post)

Tue May 12, 2020, 03:36 AM

21. This will backfire on trump

And hurts our SS. Its interesting he wants to do this weakening our safety net, while funneling trillions to the wealthy that we're paying for. trump and the Republicans don't want the American people to get anything , direct payments or anything else, and are now stalling , which will cause the trump depression to get worse, and last much longer. Trump is making this much worse, intentional?

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Response to TomCADem (Original post)

Tue May 12, 2020, 05:20 AM

22. I think the goal here is to drain the social security trust fund.

If enough people take this deal it will seriously deplete the trust fund. Once depleted it will force Congress to make changes like privatizing it. This is a scam and people should not fall for it no mater how appealing it seems on the surface.

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Response to TomCADem (Original post)

Tue May 12, 2020, 06:57 AM

24. Short term money for long term loss.

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Response to TomCADem (Original post)

Tue May 12, 2020, 07:31 AM

25. This is the worst kind of "payday" loan

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Response to McCamy Taylor (Reply #25)

Tue May 12, 2020, 07:50 AM

27. Good point, and yes it is.

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Response to TomCADem (Original post)

Tue May 12, 2020, 07:51 AM

28. Social security benefits are actually capped

at somewhere around $2800/mo although I'm not sure if that cap is adjusted yearly for inflation. I suppose in some circumstances this might make sense for someone, but with the cost of borrowing near 0 right now, I'd probably go for a loan first.
This is the DU member formerly known as DeminPennswoods.

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Response to DeminPennswoods (Reply #28)

Tue May 12, 2020, 09:36 AM

29. The maximum is much higher than that. I know seniors who get a whole lot more (I'm not one of them).

The maximum monthly Social Security benefit that an individual can receive per month in 2020 is $3,790 for someone who files at age 70. For someone at full retirement age, the maximum amount is $3,011.

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Response to TomCADem (Original post)

Tue May 12, 2020, 12:36 PM

30. Dead on arrival

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Response to TomCADem (Original post)

Tue May 12, 2020, 12:50 PM

31. Ask anyone who has ever taken out a variable-rate mortgage with a balloon payment

if this is a good idea...

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Response to TomCADem (Original post)

Tue May 12, 2020, 01:21 PM

32. Pay day loan, government style.

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