Impact of government shutdown on social security
Here’s what you need to know about Social Security payments during the ongoing government shutdown.
Three-quarters of American workers are worried they won’t receive the Social Security benefits they were promised when they retire, a new survey finds.
Generations of workers have worried about the future of Social Security and retirement trust funds. However, recently, my anxiety seems to be increasing.
A new Bankrate survey released on October 22nd found that 76% of workers and 80% of retirees are concerned about their benefits not being paid. A year ago, 73% of workers and 71% of retirees expressed similar concerns.
There are many reasons to be concerned. According to predictions, Social Security will face a shortage by 2034. At that point, the federal program’s cash reserves will be depleted and the agency will have enough funds to pay about 81% of all severance payments, according to an AARP analysis.
Approaching deadlines can create dramatic tension for workers and retirees, and mark their approach on their calendars.
“Funding issues have become a quantitative threat in recent years,” said Mark Hamrick, Bankrate’s senior economic analyst and Washington bureau chief.
Are people losing faith in social security?
The Trump administration may be stirring up anxiety. The Social Security Administration has been in turmoil through most of 2025, enduring highly publicized layoffs, policy shifts, and leadership changes.
In a March speech to Congress, President Trump called into question the integrity of government agencies, alleging “shocking levels of incompetence and possible fraud.” Some critics of Congress say the president is plotting to privatize Social Security.
The combination of bankruptcy countdown and confusion in government agencies has shaken public confidence. In an AARP survey released in July, only 36% of Americans expressed confidence in the future of Social Security, down from 43% in 2020.
Fear causes some people to claim Social Security early, on the theory that they will receive benefits forever.
In another recent AARP survey, nearly a quarter of Americans ages 62 to 66 said they had decided to claim Social Security early within the past year or planned to do so.
Americans are claiming Social Security early.
At a recent internal meeting, Social Security administrators noted that new benefit claims increased by more than 15% in March compared to the same month in 2024.
The total number of Social Security retirement claimants increased by 1.7 million people in the first eight months of 2025, according to Financial Advisor Magazine. This is a larger increase than in all of 2024.
This rise is partly due to concerns about social security deficiencies and partly as a result of new laws that increase benefits for civil servants.
For many retirees, claiming Social Security early is a mistake. You can claim as early as age 62, but the longer you wait, the bigger your monthly check will be, up to age 70.
Based on average human lifespans, economists say most people would be better off waiting.
Americans rely on Social Security to fund their retirement. The Bankrate survey of 2,466 adults found that 52% of workers said they would rely on the benefits after retirement, and 78% of retirees said they still relied on the benefits.
Reliance on social security appears to be increasing. According to AARP research, 65% of retirees now rely “substantially” on Social Security, up from 51% in 2005.
Will Congress step in to fix Social Security?
To “fix” Social Security, Congress would have to find a way to make the program more flexible. Policymakers could collect even more Social Security taxes. It would raise the “full” retirement age for Social Security, potentially extending the period before retirees receive larger checks. They could also borrow funds.
Will Congress really allow Social Security to fail? Experts, like the general public, are divided on this question.
“I think Congress will definitely do something to avoid cutting benefits,” Emily Ekins, vice president and director of polling at the liberal Cato Institute, told USA TODAY in August. “I don’t think we’re going to just accept a quarter cut in benefits.”
Bankrate’s Hamrick is more skeptical.
“There was certainly nothing to support confidence that they would pay attention to solving this low-hanging fruit,” he said.
In any case, Hamrick said, “The current path is unstable.”
