Here’s What the Government Shutdown Really Means for Social Security – And How It Will Directly Affect Millions of American Retirees

The unfortunate possibility of a government shutdown is looming if officials don’t reach a funding deal. Sadly, if this happens, thousands of federal workers could be left without pay, and many public services may slow down or even stop completely. What about Social Security? There is much concern about this.

Here’s what retirees need to know, in plain language.

Will Social Security Checks Stop?

Lucky enough for Social Security beneficiaries, these checks will still continue. The Social Security program is funded through payroll taxes and the Social Security Trust Fund. It isn’t based on the yearly budget from Congress.

However, even though benefits will not be interrupted, it doesn’t mean that everything may work as smoothly as you may thing. The Social Security Administration (SSA) is dependent on federal employees to work in offices, attend to telephone calls and fix issues. If there is a shutdown, a lot of workers will be sent home without receiving pay. This will result in inefficient service as well as increased wait times.

What Retirees Might Notice

Even though payments will still arrive, retirees may face some headaches:

• If you happen to call a Social Security field office, you may experience longer wait times.
• Appointments postponed or cancelled because offices may have fewer staff.
• Any issues that you may have, will take longer to be resolved.
• There will be delays in claims processing and new applications.

This may become a problem for those who live on fixed incomes and rely on Social Security benefits for essential expenses.

The Bigger Picture: How Shutdowns Hurt Seniors

This shutdown may also affect the economy. According to predictions, every week of the shutdown will cost the U.S. approximately $7 billion. That can create ripple effects that retirees feel in their daily lives:

• Retirees with money in 401(k)s, IRAs, or other savings accounts may see balances fall if the stock market fluctuates.
• Negative economic news might cause firms to become cautious and delay economic development by lowering consumer confidence.

So, while your Social Security check is safe, the shutdown could still hurt your finances in indirect ways.

Learning From the Past

Since 1980, there has been 14 shutdowns. Even during that time, Social Security checks kept going out but retirees still struggling with other problems.  Many people had to wait weeks for replies, paperwork was piling up, and phone lines were overloaded.

How Retirees Can Prepare

While no one can stop a shutdown except Congress, retirees can take a few steps to protect themselves:

1. Make use of Direct Deposit for your Social Security benefits, this will ensure that your benefits arrive on time in a secure manner.
2. Create an online Social Security account and view updates, as well as your benefit statements.
3. If you need to put forward a claim, do it early.
4. If a problem does come up, understand that offices may be short-staffed and responses could take longer than usual.

The Bottom Line

Should a shutdown occur, retirees can be rest assures that their Social Security benefits will not be affected. The payments will arrive each month.

The issues that may arise would potentially be inefficient services such as longer wait times, backlogs in claims and delays which could become stressful for someone who requires assistance from a Social Security field office.

Retirees are urged to keep updated with verified information, be prepared and make wise decisions to ensure financial security. Even though their Social Security checks will not be impacted, it is wise to be aware and mindful of potential changes in the system so that you are able to plan ahead.