Is the 2023 debt ceiling crisis the biggest risk to retirees?
Social Security is either hanging on by a thread or seeing forward momentum — depending on who you ask. But while opinions are mixed here, it’s hard to ignore the state of the country’s debt.
A combination of ongoing deficit spending, COVID shutdowns, and political deadlocks have created a growing problem. If the debt continues to rise, will it put the future of Social Security at risk?
How the Debt Ceiling Crisis Impacts Social Security
As the debt continues to soar with no solution in sight, the government has limited options.
Neither tax hikes on the rich nor money printing will suffice as an immediate solution. When the country’s government reaches its financial limit, there are only two choices:
Raise the debt ceiling or shut down the government.
The last time the ceiling was hit was back in 2011. Even over a decade later, we can still remember how this move impacted the economy. The effects of it now in an inflation-ridden 2023 could arguably be worse than the prolonged effects of a shutdown.
But what will this mean for Social Security? While the program is projected to be funded through 2035, what happens afterward? Failing to manage the debt properly now could handicap the government financially in the future — which could impact the future of retirement in America.
Let’s Make Sure Social Security Stays a Priority
Some would say the debt ceiling should be raised to preserve retirement funds. Others say continually kicking the proverbial can down the road only lowers the value of money and hurts retirement.
What’s the correct take? It’s up for debate. We won’t act as a political pundit — but we will forever be in the corner of America’s seniors, campaigning for fair yearly Cost-of-Living Adjustments (COLAs) and reimbursement for years skipped.