How the government shutdown affects Social Security, Medicare

With the government shutdown now a reality, retirees and would-be beneficiaries are asking the same pressing question: What happens to my Social Security and Medicare?

The good news: your payments are safe. Both Jean Chatzky, host of the "HerMoney" podcast, and Social Security experts emphasize that benefits such as retirement, disability, survivor payments, and Medicare coverage are considered “mandatory spending.”

They’re funded through trust funds rather than the annual budget process, which means checks should continue to arrive on time.

“The system hasn’t missed a payment in 90 years, and a government ‘shutdown’ won’t affect monthly benefits,” said Travis Stanley, president of National Social Security Advisors.

Social Security services during the government shutdown: delays to expect

While payments will keep flowing during the government shutdown, many other functions of the Social Security Administration (SSA) may not, and retirees and applicants should be prepared for disruptions.

Social Security disruptions that are likely during a government shutdown include:

• Administrative delays. Services such as issuing new or replacement Social Security and Medicare cards, providing benefit verification letters, correcting earnings records, or processing overpayments are likely to be delayed or paused.
• Customer service slowdowns. With staff furloughs, expect longer wait times on SSA hotlines and at local offices. “It will affect service times as some employees may be furloughed,” said Stanley. Chatzky underscored this point, noting her biggest concern is the “hassle for people who are trying to get information they need to keep their lives running.”
• Applications and hearings. New benefit applications and scheduled hearings will continue because they’re considered essential to keeping payments accurate. Still, some delays are likely.
• Disability determinations. Processing Social Security Disability claims could face bottlenecks. Federal staff are deemed essential, but state-run Disability Determination Services (DDS) may be disrupted if funding lapses.
• Annual announcements. The release of the Cost-of-Living Adjustment (COLA) could be delayed if the shutdown affects the Department of Labor’s inflation data.

Chatzky summed it up simply: While Social Security payments should arrive, retirees should brace for inconvenience. “Going through this process again is always a disappointment,” she said.

Related: Jean Chatzky makes key statement as Social Security change looms