Social Security advocates brace for debt default: Seniors should ‘be prepared’

Social Security advocates warn beneficiaries to prepare if payments are interrupted as the likelihood of U.S. debt default increases.

Negotiations continue over whether the state’s borrowing capacity should be expanded, but Congress and the White House have yet to reach a consensus on where to go.

The impasse has plunged the United States into a financially precarious situation, putting some of the most vulnerable Americans at risk.

Dan Adcock, director of government relations and policy at the National Board of Sustaining Social Security and Medicare, said there was “a good chance” that benefits for millions of Americans would be interrupted in the event of default. said.

“Seniors should be prepared if they can afford it,” Adcock said, adding that they should consider deferring discretionary purchases “so that they have enough money to get through it.”

But Adcock said millions of beneficiaries can’t afford it, with about 40% of Social Security beneficiaries, including Americans with disabilities and widowed Americans, contributing 90% of their income to safety. I pointed out that I received it from the net program. This equates to approximately 27 million people.

“Even if they’re weeks away from default, they probably won’t have enough money to run away to ease their inability to get paid,” Adcock said.

not a foregone conclusion

Analysts have suggested that it is not certain that the government will default on payments to Social Security beneficiaries in the event of default. The issue will probably depend on how much cash is on hand if and when the debt ceiling is breached.

Staggered schedules for Social Security benefits determine which part of the month you receive your benefits based on your date of birth, so if you miss a payment or miss a partial payment, all beneficiaries are equally affected. means that it is not affected by

The White House and House Republicans remain at odds after meeting Wednesday to discuss a breakthrough in the impasse. NBC News’ Capitol Hill correspondent Ali Vitali said the meeting was “tense.” Republicans, led by House Speaker Kevin McCarthy, are asking President Joe Biden to cut spending in exchange for a deal to raise the debt ceiling and avoid a default.

The White House announced Thursday that a planned follow-up meeting has been postponed.

Treasury Secretary Janet Yellen has warned that it could default as early as June 1. Asked for comment, a spokesperson for the department pointed to her recent remarks by Treasury Secretary Yellen, who said the Treasury Department may not be able to pay bills due on that date. Defaults include payments to Social Security and Medicare providers.

“This is the first time in American history that we have failed to make payments on time,” Yellen said.

A spokeswoman for McCarthy did not respond to multiple requests for comment submitted on Thursday. He told reporters after Tuesday’s meeting that there were no “new moves” on the negotiating position.

“Everyone at this meeting has reiterated their position,” McCarthy said outside the White House before the meeting.

Mary Johnson, a policy analyst at the bipartisan advocacy group Alliance for the Aged, said she was far more pessimistic about the resolution than the last debt ceiling crisis in 2011.

Johnson said by law the Social Security Administration cannot spend more money than it has on hand, and without an agreement between Republicans and the Biden administration, Johnson said he would preempt other possible workarounds. said.

“We are very divided and very likely to be in a stalemate,” Johnson said.

“And the longer you wait and the closer you get to default, the greater the risk that your Social Security benefits will be withheld, delayed, or not paid in full.”