(ConservativeFreePress.com) – Social Security advocates are warning beneficiaries that they need to be ready for the possibility that their payments might end up being interrupted.
The Congress and the White House have not yet managed to reach a decision on increasing the debt limit. As such, the chances of a U.S. debt default are increasing, leaving those Americans who depend on entitlement programs in a precarious position.
Dan Adcock, director of government relations and policy for the National Committee to Preserve Social Security and Medicare, has stated that there is a chance that if the country ends up going into default, then millions of Americans would have their benefits interrupted. He added that seniors needed to be in a position to be financially ready for that possibility and that currently, they needed to put off all discretionary purchases in order to put money aside to deal with that possibility.
However, as Adcock revealed, for millions of beneficiaries that would not be an option, as 40% of Social Security recipients, including disabled and widowed Americans, receive around 90 percent of their income through these programs. He added that those people will not be able to put enough money aside to handle not receiving their payments.
Analysts have also suggested that there is no certainty that the government is going to miss Social Security payments if the country does default, adding that it all depends on the cash flow or the time when the debt ceiling is hit.
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