If you are a Social Security beneficiary, you are likely waiting for your monthly payment with peace of mind. However, this August some people could receive less than usual. The Social Security Administration (SSA) has announced that certain payments will be cut in half.
Why is your benefit being reduced?
The reduction is due to a previous overpayment. This means that, at some point, you received more money than you were entitled to. SSA has the right to recover those amounts.
At the beginning of 2025, the agency announced that it would apply a 50% withholding rate on the benefits of those who received excess payments. In other words, half of your monthly benefit could be withheld until the debt is paid off.
The first notice was sent on April 25 and the withholding began to be applied on July 24. Therefore, August payments will be the first to reflect this reduction.
How overpayments occur
Overpayments can happen for several reasons:
- SSA errors: sometimes benefit amounts are miscalculated.
- Incomplete or incorrect information from the beneficiary: if changes in income or other circumstances are not reported, payments can be higher than they should be.
A report from SSA's Office of the Inspector General indicates that between 2015 and 2022, nearly $72 billion in improper payments were made, mainly overpayments. Of this total, about 75% was due to information not properly reported by beneficiaries.
What to do if you receive an overpayment notice
If SSA notified you of an overpayment, you have several options:
- Request reconsideration: if you believe your payment was correct.
- Request a waiver: if paying the debt causes severe financial hardship.
- Negotiate a lower withholding rate: to reduce the monthly impact on your benefits.
Remember, you had 90 days to respond to the notice sent in April. If you did not take action, the 50% withholding is applied automatically until the debt is paid.
August payment dates
Social Security makes payments according to the date of birth. For August 2025, the dates are:
- Second Wednesday, August 13: beneficiaries born from the 1st to the 10th
- Third Wednesday, August 20: beneficiaries born from the 11th to the 20th
- Fourth Wednesday, August 27: beneficiaries born from the 21st to the 31st
If your payment is affected by the withholding, you will see the reduction reflected on these dates.