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October 7, 2013 at 6:10 pm

Ryu: How Government Shutdown Affects Retirement

Jay Ryu

Dr. Jay Ryu

Jennie L. Phipps of Bankrate.com quoted Dr. Jay E. Ryu, Associate Professor of Political Science in the College of Arts & Sciences at Ohio University, in a Oct. 1 post “How Shutdown Affects Retirement.”

If the federal shutdown persists, your retirement and even your retirement planning could be affected. Here’s why.

Social Security. These payments are part of the mandatory budget. “In the original authorizing legislation, there is no provision for the federal government or Congress to deny these payments,” says Jay Ryu, associate professor of public finance and budgeting at Ohio University. The offices are remaining open, but about one-third of all Social Security employees will be furloughed. That could slow down paperwork, applications and processing, Ryu predicts.

Medicare and Medicaid. These two programs are also mostly off the table, although Medicare may be subjected to some automatic, across-the-board reductions, Ryu says, thanks to the Budget Control Act of 2011, which was enacted as a compromise to end that debt ceiling crisis.

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