Florida Sen. Marco Rubio’s proposal to allow parents to tap Social Security benefits early to pay for parental leave has a number of prominent cheerleaders—chief among them White House adviser Ivanka Trump—but investment advisors are not cheering.
Rubio’s bill would allow both parents to apply for Social Security benefits early to finance leave after having or adopting a child. According to Rubio’s analysis, the early benefits will pay for two to three months of leave and will only delay Social Security benefits at retirement by three to six months.
But the proposal has drawn fire from most investment advisors and financial planners interviewed by Financial Advisor. They believe the proposal would be devastating to Americans’ personal retirement planning and to the Social Security Administration as a whole.
“I’d absolutely be concerned about this, as it presupposes a benefit that might never get paid for,” said Dennis Nolte, a financial planner with SeaCoast Bank in Oviedo, Fla.
Nolte jokingly referred to the Rubio proposal as a Ponzi scheme.