Government shutdown: What it means for your retirement

 
With government shutdowns becoming more frequent and lasting longer — from one day in the 1980s to 35 days in 2018-20191 — it’s important to understand how these events could impact your retirement stability.
The good news: Historical data shows shutdowns rarely threaten retirement stability:
  • Social Security, Medicare and federal pensions continue uninterrupted.2
  • The S&P 500 has risen 55% of the time during shutdowns.3
  • Markets were higher 86% of the time one year after shutdowns ended.4
  • Private-sector employment remains unaffected.
To help retirees and those nearing retirement better understand how a shutdown may impact them, here is a short document reviewing the history of shutdowns and their actual impact. Click HERE to read “Government Shutdowns: Preserving Your Retirement.”
While past shutdowns have had minimal impact on retirees, future outcomes remain uncertain. Market volatility during these events could exceed your comfort level, especially if you’re within five years of retirement.
What Can You Do Now?
With shutdowns becoming a recurring concern, consider taking these proactive steps:
  • Review your risk tolerance to help ensure your portfolio aligns with your comfort level
  • Build a buffer against market losses during your critical retirement window
  • Help ensure your plan prepares you for various scenarios
Let’s Talk
If you’re wondering how potential shutdowns might affect your retirement strategy, let’s have a conversation. At Wealth With No Regrets®, we can help you review your plan and help ensure you’re positioned for confidence through any market conditions.
Call Kathy at 678-278-9632 to schedule a consultation.
Warm regards,

Barry

 

Sources:
1 Vanguard. Dec. 20, 2024. “Staying the course during a government shutdown.” https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/staying-the-course-during-a-government-shutdown.html. Accessed Sept. 22, 2025.
2 Committee for a Responsible Federal Budget. “Government Shutdowns Q&A: Everything You Should Know.” Sept. 16, 2025. https://www.crfb.org/papers/government-shutdowns-qa-everything-you-should-know Accessed Sept. 21, 2025.
3,4 Dan Burrows. Kiplinger. Sept. 22, 2025. “What Does a Government Shutdown Mean for Stocks?” https://www.kiplinger.com/investing/what-does-a-government-shutdown-mean-for-stocks. Accessed Sept. 22, 2025.

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