“Social Security Benefit Payments at Risk of Delay as Debt Limit Looms”

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Lane V. Erickson / Shutterstock

If the debt limit, currently set at $31 trillion, is not increased, there is a possibility that Social Security benefit payments may be delayed.

If President Joe Biden and Speaker of the House Kevin McCarthy do not reach an agreement by June 1, all payments made by the federal government may stop.

Retirees age 88 and older are supposed to receive the first round of Social Security benefits during the first week of June.

Supplemental Security Income recipients, which include people with disabilities and people age 65 and older with assets less than $2,000, must receive their benefits at the same time.

According to the Social Security Administration, Social Security benefits make up about 30% of seniors’ incomeand the median benefit amount for workers retiring in 2023 is $1,827 per month.

The government relies on payroll taxes, which means the Treasury Department borrows cash for public benefits and Social Security trust funds for Social Security.

Treasury Secretary Janet Yellen said that if an agreement is not reached on the debt limit, people may not receive all of their Social Security payments.

“Whether it’s due to default on interest payments due on the debt or due payments by Social Security recipients or Medicare providers, we simply wouldn’t have enough cash to meet all of our obligations,” Yellen told ABC.

By 2023, it is estimated that payments totaling $1 trillion will be delivered to nearly 67 million people. This includes about 48 million retirees and about 7 million workers with disabilities.

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