As you’ve probably heard by now, our government has officially shut down. After weeks of failed negotiations and threats from both sides of the aisle, the deadline for coming to agreement on funding various government agencies has passed. With today being the first day of the shutdown, and seemingly little progress toward Congress passing a funding bill, you likely have many questions about how all of this could affect you.
First of all, if you are one of the 533 members of Congress, don’t worry, everything will be OK. You will still get paid regularly throughout this whole ordeal and your congressional paycheck will not be interrupted, even though you couldn’t do your job and affected hundreds of millions of people. As the old saying goes, “if at first you don’t succeed in passing a funding bill, make a half-hearted attempt to try again, point your finger at the other side, and then shut down the government.” Now, if you’re not one of the lucky 533, then here are some points to keep in mind…
To start, it’s important to realize that a shutdown isn’t exactly what it sounds. If I was to compare it to a computer, instead of being completely turned off, the government has entered screensaver mode: it’s still on, just not really doing all that much. Some government agencies like Department of Housing and Urban Development, Environmental Protection Agency, and NASA, for example, will have to furlough most of their employees while keeping just a small percentage on board, who are absolutely indispensable. Other agencies will have to scale back some of their work, but will still continue to provide the most essential services to the public. For example, the Social Security Administration will still work to make sure that benefit checks are sent out, but won’t be able to help with less urgent services, like replacing Social Security and Medicare cards, or issuing proof of income letters. The Department of Health and Human Services will have to operate on only about half of its workforce. Just imagine if the company you work for had to furlough half its staff – what quality of service would the customers receive?
On the other hand, the Postal Service will still remain open because it has a completely independent source of funding and will not be affected by the shutdown. This is something to keep in mind in case you’d like to stroll over to your local post office branch, slap a stamp on an envelope, and send an angry letter to your congressman (or congresswoman) to get their act together!
Whatever your point of view (and whoever you think is to blame) the bottom line is that this stalemate within the walls of the Capitol will have significant impact on the country, especially if it lasts more than a few days. Depending on how long this lasts, the impact on the economy to be in the hundreds of millions of dollars. But more importantly, this raises a question of what will seniors, and those nearing retirement, do if the shutdown becomes a prolonged debacle? Sure, Social Security checks may keep coming for now, but what if you lose your benefits card? What if you need to schedule a disability hearing? What will happen to the services offered by the State, that depend on federal funding to operate?
To me personally, this is proof, once again, that when it comes to the well-being and security of you and your family, you cannot depend on anyone but yourself. Our legislators have shown over and over that they can’t agree with each other or learn how to compromise. They’ve taken the country to the brink more than once in the last several years, and you have to ask yourself: “Are these the people I would like to trust with keeping me safe in my retirement? Will they really do everything they can to make sure that I and my family are taken care of and that I will receive the benefits I was promised, and for which I paid taxes?” If your answer is “yes,” then no reason to worry. Keep your head firmly buried in the sand, and keep your fingers tightly crossed. Remember, if you don’t see it, then it doesn’t exist, and you have nothing to worry about.
But if you’d like to be the one in control of your future, if you’d like to know that you can keep yourself and your family financially secure during difficult times, start taking steps today to build a better future for yourself, so that you’re not so dependent on the whims of Washington. Start budgeting better and setting aside more money for retirement. Contribute more to your 401(k) and build an emergency fund in a savings account. Review your retirement portfolio regularly to make sure you’re not exposing yourself to too much risk for your age. Every little step will help you build a more secure retirement, and will help you take better care of your family in an emergency.
Now what are the possible implications of the government shutdown on your retirement savings? Attend my workshop. Don’t rely on the government! Click here to register.