We first wrote about the potential for a government shutdown back in September, when Congress was approaching a funding deadline and many families were preparing for possible disruptions. Now that a shutdown has taken place and the government has officially reopened—at least through January 2026—we’re sharing an updated look at what this means going forward, especially for those planning or living in retirement.

If you missed the earlier article and want additional context, you can read it here:

👉 Government Shutdowns & Retirement: What You Need to Know

What Happened—and Why It Matters

After weeks of uncertainty, the federal government has officially reopened following a new spending agreement passed by Congress and signed by the President. While this restores federal operations, the agreement only funds the government through January 2026, meaning we may see another standoff if lawmakers don’t reach a longer-term consensus.

This is a good reminder that even with careful planning, unexpected political and economic events can still create temporary uncertainty—especially as you approach or enter retirement.

Do Government Shutdowns Affect Retirement?

Shutdowns often spark questions about income, healthcare benefits, and market movements. As we shared in September, Social Security and Medicare benefits have historically continued through past shutdowns, and that remained true this time as well.

Shutdowns may, however, temporarily affect:

• IRS processing timelines
• Federal employee pay
• Public economic data releases
• Market sentiment and short-term volatility

These ripple effects don’t necessarily derail long-term plans, but they can make headlines feel heavier—especially if you’re close to retirement.

What History Shows Us About Markets

As we noted in our September post, market behavior during shutdowns has varied over time. Some periods saw declines leading up to deadlines, while others experienced minimal impact.

A recent analysis from YCharts offers additional perspective:

• The S&P 500 rose during 55% of past shutdowns
• Markets were higher in roughly 86% of cases one year after shutdowns ended¹
• Private-sector employment has generally remained stable

Of course, past performance does not guarantee future results, and each situation is unique. But context can help put headlines into perspective.

Why This Matters Most Near Retirement

If you’re already retired or planning to retire in the next few years, even short-term volatility can feel more impactful. This is often a time when:

• Portfolios may be shifting toward preservation
• Income sources begin replacing paychecks
• Tax strategy and withdrawals become more sensitive to timing

That’s why it can be helpful to think of shutdowns not as crises, but as reminders to ensure your plan is designed to handle both stability and uncertainty.

What You Can Do Now

With the government reopened, this may be a good moment to review your strategy and confirm you’re still comfortable with how everything is positioned.

If it would be helpful, you might:

• Revisit your risk tolerance
  Does your portfolio still reflect how much movement you’re comfortable with?
• Explore strategies designed to help manage volatility
  Especially if you’re within five years of retirement.
• Review your retirement income plan
  Is it built to adapt across different market or policy environments?

The goal isn’t to react to every headline—it’s to have a plan designed to flex when headlines happen.

We’re Here to Help

If you’d like, we can walk through your plan together and explore how recent events might affect your path forward. At Richmond Brothers, we can help you:

• Clarify your goals and comfort level
• Stress-test different market and policy scenarios
• Coordinate income, investments, tax strategy, healthcare, and legacy planning

If you’d like to talk, simply reach out and we’ll schedule a 20-minute Clarity Conversation—by phone, Zoom, or in person.

Our purpose is simple:
to empower you to live fearlessly into and beyond retirement.

Sources

¹YCharts. “Government Shutdown October 2025: Analyzing Market Impact and Sector Performance.” October 2, 2025. https://get.ycharts.com/resources/blog/government-shutdown-2025-impact/

Historical analysis is provided for context only. Past performance is not a guarantee of future results. This material is for educational purposes and does not constitute individualized financial advice. To determine which investments may be appropriate for you, consult your financial advisor prior to investing.

Any indices referenced are provided to give broad perspective of the markets. The indices shown are unmanaged, do not reflect the impact of fees or other expenses, and cannot be invested in directly. Comparisons are not intended to contrast strategies or compositions due to material differences.

As always, please remember investing involves risk, including possible loss of principal. Please seek personalized advice from a licensed professional.