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They are talking about Australia's Superannuation, which is more akin to a pension plan where you have a balance based on your contributions. Social security is a tax and defined benefit plan, there is no balance to withdraw from.
That scheme (an advance on SS benefits) was discussed during the CARES act frenzy. IIRC the SS Administration shot it down claiming that it would disrupt payments to existing retirees, something no politician would dare to confront.
That scheme (an advance on SS benefits) was discussed during the CARES act frenzy. IIRC the SS Administration shot it down claiming that it would disrupt payments to existing retirees, something no politician would dare to confront.
I don't know why seniors per se would need this. But we could just call on Uncle Ben for a helo drop to everyone 65 and over.
I don't know why seniors per se would need this. But we could just call on Uncle Ben for a helo drop to everyone 65 and over.
The money would have to go through SS and their annual budget and the way it’s allocated would not permit the advance payments without affecting payments to existing accounts. Or it could be they simply didn’t want to handle this political football — can you blame them?
The money would have to go through SS and their annual budget and the way it’s allocated would not permit the advance payments without affecting payments to existing accounts. Or it could be they simply didn’t want to handle this political football — can you blame them?
Congress meets and votes to hand out money to seniors. They have the Treasury issue the necessary amount of debt and the Fed buys that debt with money it creates out of thin air. Maybe on the order of $500B?
No, this political/economic football ain't gonna happen!
Trump administration already proposed a flat-price advance on first 3 months of Social Security benefits. Debt would have to be issued by the government, while Social Security's trust fund balance would accrue the lump sum and subsequent interest. Since it is another of the mandatory programs, there is no requirement for the administration or Congress to do anything unless they are doing something outside the normal Social Security program (like this proposal which was shot down).
They are talking about Australia's Superannuation, which is more akin to a pension plan where you have a balance based on your contributions. Social security is a tax and defined benefit plan, there is no balance to withdraw from.
Yes, the equivalent here would be allowing people a penalty-free withdrawal from their 401k or IRA.
The cares act is already shorting SS, don’t worry. Companies can freeze payments the rest of this year on the employer SS match and pay it back half in 2021 and half in 2022.
And the penalty free hardship distribution for 401ks has already been expanded to Cover COVID-19 candidates as well.
Yes, the equivalent here would be allowing people a penalty-free withdrawal from their 401k or IRA.
This is true and it is only $10,000. There are some hardship provisions anyway when it is possible to withdraw it.
People who are wasting the money needlessly would probably withdraw the lot, which is allowed, when they hit 60, and claim the state pension when they are 66. Then complain they are hard done by.
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