Social Security benefit payments may be delayed.
It isn't known if this is a scare tactic or not, but it is a good idea to prepare for the worst case scenario.
According to NBC News:
With the odds of a U.S. debt default increasing, Social Security advocates warn beneficiaries they should be prepared in case their payments are interrupted.
Negotiations around whether the nation's ability to borrow money should be expanded have been ongoing, but Congress and the White House have yet to reach an agreement on the path forward.
The impasse has placed the U.S. in a precarious financial position, and leaves some of the most vulnerable Americans at risk.
Dan Adcock, director of government relations and policy for the National Committee to Preserve Social Security and Medicare, said there is a "good chance" that in the event of a default, millions of Americans' benefits would be disrupted.
"Seniors should be prepared if they're financially able," Adcock said, adding they should consider putting off discretionary purchases "so they have enough to tide them over."
Not a foregone conclusion
Analysts suggest it isn't certain that the government will miss payments to Social Security recipients in the event of a default. The matter would likely depend on how much cash is on hand if or when the debt ceiling is breached.
The staggered schedule of Social Security payments, which relies on an individual’s birthdate to determine which part of the month they receive them, means not all beneficiaries would be equally affected in a missed or partial-payment scenario.
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