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For the Week of October 10th, 2025
Government Shutdown Jitters, Ray Dalio’s Warning, and the “Hidden Costs” That Bite Back
If the first full week of October felt… wobbly… you’re not imagining it. With Washington partially shut down, a billionaire hedge-fund legend sounding alarms, new polling showing Baby Boomer sentiment sliding, and fresh reminders that retirement’s biggest bills often arrive late, there’s plenty for retirees (and soon-to-be retirees) to watch and act on.
By RetirementRedFlags.com
Follow the week’s top retirement news to secure your income and peace of mind! You deserve it.
1. Government Shutdown: Will your Social Security still arrive?
Short answer: yes. Benefit payments keep flowing because Social Security is “mandatory spending” and not dependent on annual appropriations. But a shutdown does strain day-to-day SSA operations (think slower claim processing, appeals, card replacements, and customer service). Multiple briefings this week reiterated that checks continue, while warning of service disruptions.
A related twist: the administration is selectively recalling furloughed staff to publish key inflation data (the September CPI), which helps determine the 2026 Social Security COLA calculation timeline. Translation: the number-crunchers needed for COLA math are being brought back to work even while other functions remain constrained.
Action Steps:
✔ Create or update your “My Social Security” account (ssa.gov/myaccount) to check payment history and file documents online if offices are backlogged.
✔ Keep copies of all paperwork submitted during the shutdown, as SSA appeals or reconsiderations may take longer.
✔ Watch inflation reports in mid-October. These numbers feed the 2026 COLA calculation and will help you forecast your income adjustments.
2. Ray Dalio Warns: “America Looks Like the 1970s Again”
Bridgewater Associates founder Ray Dalio resurfaced with a stark macro warning: the U.S. looks “very much” like the early 1970s - high debts, policy trade-offs, and an asset many assume is a safe store of value that, in his view, may not hold that role so well. It’s part of his broader theme about a “debt/deficit problem” turning into a market pressure cooker.
Action Steps:
✔ Hold 12–24 months of expenses in cash or private bonds to avoid selling assets during market dips.
✔ Diversify globally - don’t anchor all investments to U.S. stocks or Treasuries; private and international exposure can buffer domestic turbulence.
✔ Check your withdrawal rate - in volatile markets, flexible withdrawal strategies (like the “guardrail” method) can help sustain income.
3. Baby Boomers’ Approval of Trump Slips: Political Shifts and Policy Risks
New polling coverage this week highlighted a notable drop in President Trump’s approval among Baby Boomers and older voters versus midsummer readings. While polls move around, this shift is important because older voters are a powerful policy bloc on Social Security, Medicare, and taxes.
Action Steps:
✔ Review your tax exposure - future administrations may adjust retirement account taxation or Social Security thresholds. Use 2025’s current brackets wisely.
✔ Stay politically informed but financially neutral - avoid big investment moves based on polling. Policy headlines rarely translate neatly into portfolio outcomes.
✔ Ask your advisor or CPA to run “policy what-ifs”: what happens if Social Security taxes rise, Medicare premiums shift, or capital gains rates increase?
4. Hidden Costs of Retirement: The Expenses That Sneak Up
A timely rundown this week spotlighted the expenses that most often catch retirees off guard. Chief among them: long-term care (LTC), which can dwarf routine health expenses and trigger faster-than-planned portfolio drawdowns. Other “gotchas” include taxes on withdrawals, Medicare IRMAA surcharges, home repairs, travel/children support, and inflation on everyday services.
Action Steps:
✔ Create a “surprise fund” equal to at least 10–15% of annual expenses for repairs, medical costs, or family help.
✔ Investigate long-term care options now - premiums climb with age. Compare traditional LTC insurance vs. hybrid policies that combine life and care coverage.
✔ Review your tax buckets annually - coordinate withdrawals from Roth, IRA, and brokerage accounts to manage tax brackets and IRMAA thresholds.
5. When Couples Disagree About Retirement Goals
One widely shared feature this week explored how even long-married couples can clash over retirement timelines, spending, where to live, and daily routines - and how proactive planning can prevent resentment.
Action Steps:
✔ Schedule a “retirement vision meeting” - each partner writes down what an ideal week in retirement looks like, then compare.
✔ Build two scenarios - one for retiring together, another for staggering retirement dates; compare how each impacts your cash flow.
✔ Check in yearly - revisit your joint plan each fall before open enrollment and year-end tax planning.
If you have any questions about the headlines that hit the news this week, we are answering questions in our free Facebook group The Retirement Red Flags Community. Click below and we will make sure you get added.
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