Will a Government Shutdown Impact Social Security Checks? No, But Retirees May Still Feel the Effects

Key Points

• While Social Security checks will continue to go out as planned, thousands of workers at the Social Security Administration will be furloughed.

• The SSA will offer limited services at its offices.

• A potential lack of key government data could also delay when retirees find out about the new Social Security cost-of-living adjustment.

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The U.S. government officially shut down on Oct. 1 after the Senate failed to pass the necessary funding bills to keep certain federal agencies open. It's the first time such an event has occurred since the end of 2018, a shutdown that ultimately dragged on for 35 days.

While very disruptive, a government shutdown does not halt everything. For instance, mandatory funding for programs like Social Security and Medicare will continue to flow, so over 74 million Social Security retirees will continue to collect critical benefit checks each month. However, the agencies that oversee these programs will be affected, which could stifle parts of the Social Security program.

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Reduced services for now

The Social Security Administration (SSA) said on its website that field offices will remain open, but in a limited capacity. That could be because thousands of SSA employees will be furloughed, meaning they will take a temporary, unpaid leave of absence from their jobs. According to CNBC, about 6,000 of the SSA's employees will be furloughed. The SSA said that the following services will still be available during a shutdown:

• Apply for benefits
• Request an appeal
• Change your address or direct deposit information
• Report a death
• Verify or change your citizenship status
• Replace a lost or missing Social Security payment
• Obtain a critical payment
• Change a representative payee
• Make a change in your living arrangement or income (SSI recipients only)
• Obtain a new or replacement Social Security card

However, the SSA will not be able to provide proof-of-income letters, update or correct retirees' earnings records, conduct overpayment processing, or replace Medicare cards. According to the SSA's contingency plan for a shutdown, the agency is focusing on "our direct-service operations and those needed to ensure accurate and timely payment of benefits" and will "cease activities not directly related to the accurate and timely payment of benefits."

I would also expect average wait times both in-person and at field offices to increase during a shutdown, although the agency has made significant progress on this issue over the past year.

Key inflation data potentially delayed

Another minor issue is the delay of key economic data that the SSA needs to make its 2026 annual cost-of-living adjustment (COLA). With the government shut down, key U.S. government agencies like the Bureau of Labor Statistics (BLS), Bureau of Economic Analysis, and Census Bureau will not be collecting and publishing economic data as usual.

The BLS is not expected to report its key September jobs report on Oct. 3. This data is crucial to the Federal Reserve determining how many interest rate cuts it expects for the rest of the year. If the shutdown continues, the BLS will not report the September Consumer Price Index (CPI), which is slated for release on Oct. 15. On the betting website Polymarket, 39% of people gambling on how long the shutdown will last think it will extend until at least Oct. 15, while 34% expect a conclusion between Oct. 10 and Oct. 14.

The SSA calculates the following year's COLA using a subset of CPI inflation data during the months of July, August, and September. If there is no CPI report, retirees will not be able to know the exact 2026 COLA until the government reopens, although experts already have a good idea of what to expect. While partisan tensions are high in Washington, D.C., a prolonged shutdown is unlikely to benefit Democrats or Republicans, so I don't expect it to last too long. But the longer it does last, the more disruptive it will be for Social Security retirees.

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