The government shutdown may not stop Social Security payments from flowing — but not all recipients will come out unscathed. Where do you stand?

Only time will tell how long it takes for lawmakers to come to an agreement on the spending bill needed to lift the shutdown. The last — and longest — shutdown lasted 35 days from December 2018 to January 2019 during President Trump’s first term [2].

The good news for retirees and those on disability benefits is that the Social Security Administration (SSA) will keep issuing payments. That’s because these benefits are considered mandatory spending, so no further approval is required by Congress [3].

The bad news is that the SSA will halt many other services during the shutdown, affecting existing beneficiaries and those who want to apply for benefits.

How a shutdown affects existing Social Security recipients

So payments will continue as normal. But what about the Social Security Administration’s “administration” side? Not so much.

Approximately 90% of the agency’s staff — 45,000 workers — are to remain on the job, but they’ll be stretched. They were already operating at reduced capacity after the Trump administration culled 7,000 employees [4].

That means Americans should expect a delay in administrative services, including getting through to customer support.

And if a mistake happens on the administrative side, the shutdown could spiral into a hassle.

For example, the agency plans to halt earning-record corrections and overpayment processing, which means you might have to wait until after the shutdown is over to get any mistakes corrected.

A prolonged shutdown might delay 2026 Cost of Living Adjustment (COLA) adjustments. That could mean living with a Social Security check that hasn’t kept pace with inflation, making it difficult to make ends meet [5].

If you’re applying for Social Security benefits, expect slower processing and delayed approval. New retirees and prospective retirees might feel the delay acutely.

If facing a delay in the lead-up to retirement, some might choose to delay their departure from the workforce, and those caught in limbo might be forced to drain their savings to stay afloat until their Social Security benefits start to roll in.

How a shutdown affects us all economically

Beyond the direct impact on Social Security, a government shutdown can have a chilling effect on the entire economy.

For example, the 2018 shutdown led to a loss of $3 billion in possible GDP, according to the Congressional Budget Office.

With the economy already facing multiple headwinds, this could add to the slowing job growth. Fewer available jobs can hurt Americans at any stage of life [6].

Unfortunately, what goes on in Washington is largely out of the control of the everyday American.

You can call your representatives to let them know you’d like the shutdown lifted as soon as possible.

Meanwhile, you can continue working to improve your financial situation, with a strong emphasis on building a robust emergency fund to carry you through potentially turbulent times ahead.

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