The Social Security Administration (SSA) is implementing new measures to control overpayments. These measures are part of an effort led by the Department of Government Efficiency (DOGE), created to reduce unnecessary spending in the federal government.
The goal is to recover overpaid money and improve the system's accountability. Therefore, starting at the end of July, many retirees could see their Social Security checks reduced.
What are overpayments and why do they happen?
An overpayment occurs when SSA gives a beneficiary more money than they're entitled to. This can happen for several reasons: administrative errors, delays in updating information, or because the beneficiary doesn't report changes in their situation. Between 2015 and 2022, approximately $72 billion were mistakenly overpaid.

When SSA detects an overpayment, it sends a notice with the amount that supposedly must be returned. The beneficiary has 90 days to respond and can dispute the payment, request a lower withholding, or ask for a waiver if they can't pay.
The withholding rate rises to 50%
During the Biden administration, SSA only recovered about 10% of overpayments to avoid affecting beneficiaries too much. However, the new administration decided to increase this rate.
After criticism, it was adjusted to 50%. This means that if you have a pending overpayment and didn't respond to the notice, up to half of your monthly check could be withheld.
Notices were sent at the end of April and the deadline to respond ended in July. Those who haven't acted are already seeing their payments significantly reduced until they pay what they owe.

What impact does this have on your future?
Although these measures could save about $7 billion over the next 10 years, this figure is only a small part of Social Security's financial problem. It's estimated that the trust fund paying benefits could be depleted in 2033, which would force cuts of around 23% if no other measures are taken.
That's why it's vital for retirees to stay alert and carefully plan when and how to claim their benefits. Delaying the receipt of payments can significantly increase the monthly amount received, even by thousands of dollars per year.
The increase in Social Security withholding for overpayments represents a heavy blow for many retirees with fixed incomes. If you received a notice and didn't act, you're likely to see significant cuts in your check. In these changing times, the best defense is to stay informed and carefully plan your benefits to protect your long-term income.