Amid a new wave of government measures, thousands of retirees could see their Social Security payments reduced or even eliminated. The Social Security Administration (SSA) has issued a new notice that's worrying many retirees. Now, overpayments will be collected more strictly, which could seriously affect those who depend on these benefits to live.
What's happening?
As a result of decisions driven by the Trump administration in 2025, the government has tightened its collection policies. SSA has started sending warning letters to retirees informing them that they've been paid more than they were entitled to.
In many cases, this is due to administrative errors, incorrect calculations, or outdated data. The problem is not minor. In 2024 alone, nearly $72 billion in improper payments were reported.
What's changing now?
Until recently, SSA could only withhold a maximum of 10% of a retiree's monthly payment to recover those overpayments. But since March 2025, the policy changed drastically: now it's possible to withhold up to 100% of monthly benefits.
Although in April the limit was lowered to 50% for new cases, many retirees could still lose half of their income if they don't act in time.
Student loan collections also return
If that weren't enough, on May 5, 2025, collections on delinquent student loans were also reactivated. This measure affects more than 5 million people, including many retirees who still carry debts from the past. Those who are not up to date could face garnishments of their Social Security benefits.
Linda McMahon, current Secretary of Education, defended these measures, stating that the government "must ensure that debts are paid." According to her, this is key to keeping public programs sustainable.
What can you do if you received a letter?
If you've received an overpayment notice, there are options:
- Review the letter carefully. Make sure you understand the reason for the claim and the amount.
- Request a lower withholding rate. If the proposed collection is too high, you can ask for a reduction.
- Appeal the decision. You have 60 days to submit form SSA-561.
- Request a waiver. If the error wasn't yours and repaying the money would cause you hardship, you can ask to have the debt forgiven with form SSA-632.
Who are the most affected?
These measures have been harshly criticized by senior rights organizations. Many fear that these policies will especially affect low-income people who rely exclusively on Social Security.
Retirees who already struggle to cover the essentials could find themselves in serious trouble. A reduction or suspension of their Social Security payments would further worsen their situation.