Is Social Security’s future in jeopardy if there’s a government shutdown?
As we head toward 2026, a big financial hurdle is on the horizon. The government’s debts are piling up. As they reach the ceiling, leaders must make a tough choice. However, this delay could impact the 2026 Cost-of-Living Adjustment (COLA) announcement.
Not only could a shutdown delay the announcement, but it could push back the actual increase on retirees’ checks, which would be an economic hardship for some and a serious injustice to everyone.
Is a Delay Imminent? Or Avoidable?
There are always debates about what exactly causes government shutdowns. Some blame failures of policymakers, while others point to the long-term unsustainability of the financial system itself. However, our focus is on how this issue will impact Social Security and the people who rely on it.
Should the government choose to raise the debt ceiling and inflate its way out, money could begin losing purchasing power. This is already taking place to some degree in our economy now, as evidenced by the rampant inflation. It’s why the past several COLAs have fallen short, even including the 8.7 percent boost from 2023 and the 3.2 percent boost from 2024.
The longer a shutdown lasts, the more likely it is that the 2026 COLA will be delayed. It’s a complex situation, and there are differing opinions about the right course of action. There are many areas of the country that need funding. But we’re here to remind everyone that seniors don’t just need their benefits — they deserve them for paying in all those years.
Will You Help Protect Social Security’s Future?
The debt ceiling, inflation, and economic uncertainty all impact Social Security. But there’s something else that carries a great deal of influence — the collective voice of Americans.
We at the Council for Retirement Security work to protect the retirement that seniors have earned. Learn about our Social Security Lock-Box Petition, then bookmark our page and follow us on Facebook and Twitter for more retirement news.
