Delay Social Security Benefits for a $5,000 Stimulus Check? Learn About the New Proposal

May 11, 2020

    If there was an option to receive a $5,000 stimulus check now in exchange for delaying your Social Security benefits when you retire, would you take that offer? If a new proposal is approved, the U.S. government may soon make that an option for Americans.

    According to The Washington Post, senior White House officials are considering a proposal in which Americans could sign up to receive voluntary stimulus checks for up to $5,000 with a caveat — they would do it in exchange for a delay in receiving their Social Security benefits.

    The payments would come in the form of loans that would receive a “favorable government interest rate” until people chose to start receiving their retirement benefits from Social Security. At that point, the loan would be paid back out of the first checks they would be slated to receive, and once the loan was paid in full, they would then get their full Social Security checks.

    It is unclear whether this plan will gain momentum given the precedent that it could set in attaching Social Security benefits to future aid bills. Three administration officials say that the White House has already rejected a proposal called “the Eagle Plan” that called for upfront payments to some federal workers in exchange for an overhaul of federal retirement plans.

    “President Trump has been clear that while he is in office, the American people can feel secure without a shadow of a doubt that he will completely protect Social Security and Medicare — end of story, full stop,” said White House spokesman Hogan Gidley about the Eagle Plan.

    Senate Democrats have proposed a plan called the Monthly Economic Crisis Support Act, which, if approved, would provide $2,000 on a monthly basis to eligible Americans. A similar proposal was introduced into the House of Representatives last month that seeks to give Americans 16 or older making less than $260,000 a year a payment of $2,000 a month.

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