HILLSBOROUGH COUNTY, Fla. — As the deadline approaches on the debt ceiling, concerns are rising over potential impacts on Social Security and veteran benefits.
At nearly 92 years old, Bard Heavens enjoys his independence.
“Of course, if I don’t have any money, I’m not independent anymore,” said Heavens.
He’s a Korean War veteran and said he lives on his social security check month to month. But, with the looming debt ceiling crisis, Heavens feels like it’s becoming all too real the possibility he doesn’t get a check.
“That’s my money coming back, and the government’s holding the strings on it,” said Heavens.
People brought their concerns to ABC Action News over possible Social Security and VA benefits impacts, so we reached out for answers.
The VA said because there is no precedent for default, it’s hard to know the exact impacts on specific federal programs. However, it stated each month, the Treasury makes payments on behalf of the VA of approximately $25 billion and said that if the debt limit is reached, all of these payments could be curtailed or stopped.
Those payments include $12 billion monthly in benefits payments to more than 7.1 million veterans and their families.
“Generally, when you talk about money, you never want to panic,” said Celine Pastore, a financial advisor with SimplePath Retirement.
Pastore said to make sure that you have an emergency fund. But, when it comes to people relying on these funds for rent, mortgage, or other payments, Pastore said it’s always best to be proactive.
“The last thing you want to do is stop answering the phone or opening the mail,” said Pastore. “You want to be proactive. You want to reach out to them before they reach out to you.”
She said she would not go spending extra money on things that aren’t required. Pastore pointed out that today is also the day to prepare for next time.
“Let’s say they do raise the debt ceiling, and we don’t have a crisis; it’s not going to be the last time we’ll have to deal with things like this,” said Pastore.
Until a resolution, people like Heavens remain caught in the middle.
“It disappoints me and makes me mad and even is more frustrating because there’s not a darn thing I can do about it,” said Heavens.
