From Yahoo Finance: 2025-05-10 12:00:00

The Social Security Administration now withholds up to 50% of monthly benefits for overpayments, a reduction from the previously announced 100% clawback. Overpayments occur due to errors or delays, triggering a notice for repayment. The default withholding rate is 50% unless beneficiaries take action within 90 days. Critics warn of financial distress despite the change.

Beneficiaries can request a reconsideration, waiver, or lower withholding rate, but responses vary. Thousands of employees handle cases with discretion, and long SSA appointment wait times hinder timely responses. Act swiftly upon receiving a notice to challenge within 90 days. Contact the SSA promptly to explore options and potentially reduce or avoid repayment if not at fault.

Although the SSA’s decision to reduce overpayment withholding from 100% to 50% may seem positive, it can still have serious consequences for retirees. Stay informed, act promptly on notices, and seek assistance if needed. The shift in policy, while a step back, continues to pose challenges to beneficiaries facing financial hardship.

Read more: Social Security Reduces Overpayment Withholding Rate, Experts Warn Of Fallout