THE possibility of a government shutdown is looming as an October 1 deadline approaches.
Both Republican and Democrat lawmakers have yet to agree on funding for some specific legislation by the date.
A government shutdown could affect Social Security recipients (stock image)[/caption]
The Social Security Administration is a vital service (stock image)[/caption]
So far, neither have shown intentions to negotiate, per NewsNation.
President Donald Trump even said in a statement on Friday that “if it has to shut down, it’ll have to shut down,” arguing that Democrats would be responsible for any disruptions.
Democrats have argued back that Republicans refuse to negotiate vital healthcare issues, including the potential extension of Affordable Care Act subsidies and decreasing Medicaid cuts.
Should the government actually shut down on Wednesday, it would be the first time it has since 2018, when the 115th Congress and Trump did not agree on bill appropriations for the federal government for the 2019 tax year.
Government shutdowns severely impact federal agencies and their workers, as certain offices close, but Social Security recipients can rest easy that they won’t be out money.
The Social Security Administration (SSA) is considered an essential service to Americans, and typically continues to operate.
It’s mostly because the SSA is funded through mandatory government spending, unlike other programs that require a renewal for more discretionary cash.
WORKERS IN JEOPARDY
Still, the SSA won’t be operating at full capacity, according to a contingency planning document from the federal agency’s Office of Finance and Management.
Under a potential government shutdown starting on October 1, 2025, the SSA said about 6,100 of its 52,000 workers would be furloughed, meaning they’d be suspended from their job without pay.
Even so, the SSA emphasized that benefits would arrive as usual for its around 74 million recipients during a shutdown.
“We will continue activities critical to our direct-service operations and those needed to ensure accurate and timely payment of benefits,” the document states.
Medicare, Medicaid, and Veterans Affairs distributions would also go out amid a government shutdown, as they are mandatory spending.
While Social Security payments should continue as usual considering this information, it’s possible that interruptions or minor delays could occur during a government shutdown considering the staffing reduction at the SSA, per The Hill.
According to a report from The New York Times, Medicare recipients who need replacement cards may also not be able to get them until a government shutdown ends.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here’s how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
- 401(k) Plans
- A 401(k) is a retirement account offered through employers, where contributions are tax-deferred.
- Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings.
- Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.
- IRAs
- An Individual Retirement Account (IRA) offers another avenue for retirement savings.
- Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices.
- Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.
For some government workers, the furloughing could also become definite after a shutdown.
The White House’s Office of Management and Budget (OMB) noted in a recent memo that agencies with furloughed staff should “use this opportunity to consider reduction in force (RIF) notices for all employees in programs, projects, or activities.”
PAPER NO MORE
Social Security recipients should also remain aware of a payment change that went into effect today.
As of September 30, the US Treasury is no longer sending out paper checks to recipients from federal service programs.
This, of course, includes monthly disbursements for Social Security, Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI).
The decision was made by the Trump administration in March to focus solely on digital payments as it would save the government an estimated $750 million annually and prevent potential fraud.
According to government data, paper checks are about 16 times more likely to be stolen or lost.
Less than 1%, or around 400,000 Social Security recipients still get paper checks instead of direct deposits.
Should they not have set up direct deposit or other digital distribution method through their My Social Security account or several other avenues, they could see delays in payments.
A fund the SSA has is also expected to run out of money entirely soon, resulting in only partial benefits for millions of Americans.
There is currently a bipartisan effort from two senators being explored to prevent this from happening.
