There are over 70 million Americans dependent on the funds received monthly from the federal government. With the recent warning from President Obama that these checks may not be showing up in the mail come August 2, there is now plenty more financial worries facing Americans.
The Social Security Administration contends there is more than enough funds to cover the checks sent out each month despite the debt crisis facing the federal government. Because negotiations have stalled however, it is possible that Americans may still not receive those checks if there is other debt obligations that are considered a higher priority.
Some feel the threats are just that, used as a way to force negotiations and reach a deal. However, the White House has indicated that they are looking at the potential of cutting recipient’s benefits using a new cost-of-living formula and considering a raise of the retirement age. Both measures would cut benefits for recipients over time.
For those who are dependent on receiving benefits, a cut in checks starting as early as next month can make living even more difficult. Since there is no concrete answer as to whether or not the checks will definitely be halted, those counting on benefit payments need to start planning and fast to ensure their financial obligations will be covered.
It is also important to note that those who are just filing for benefits, there may be a considerable delay in processing the application. If the changes do come as announced, the SSA may force layoffs and as a result have less staff to work on the application processing.
If you have questions about filing a new claim for Social Security benefits or have questions about what will happen to your current claim, contact our office today by calling us toll free at 855-614-4351 or using our online contact form.