Social Security is introducing big changes in its payments for millions of Americans, which could either increase the payments or, in some cases, reduce them. Starting from this month, the government is all set to roll out the major updates and information on how the Social Security payments will change and how they will be handled.
Well, these changes are not just policy tweaks; it is going to have an impact on the retirees, disabled individuals, and all other beneficiaries of Social Security across the nation. Let’s break down this article and understand what is changing in Social Security, the reason behind the change, and what steps the beneficiaries should consider.
Huge Social Security Change This Month
Let’s begin with one of the highest shifts by Social Security this month. The Social Security Administration (SSA) has confirmed that now they can withhold up to 50% of monthly benefits if an individual is overpaid. Yes, you heard it right. If SSA finds that you are paid too much, even if it is from their end, the administration still takes back half of your paycheck to recover the overpayment. Starting from July, all the Social Security beneficiaries who received overpayments will now experience a 50 percent cut in their monthly paycheck.
Over the past few decades, the Social Security Administration (SSA) has been accidentally overpaying the beneficiaries, and till now over billions of dollars have been paid. Even if these overpayments are not your fault, you may still have to experience an income change. As the government now wants its money back, so it is introducing new changes in the rules to recover the money faster.
Who Will Be Impacted Under This Change?
Under this new change, the Social Security beneficiaries who have received the overpayment in their account at any time, even if it is not their mistake, are subject to the withholding policy of the SSA and will be the most impacted. From the start of this month, the SSA is all set to withhold up to 50 percent of the monthly benefits of those beneficiaries who were overpaid. This will continue until the total debt is recovered by the administration. This announcement is a continuation of the earlier announcement made by the government, where the government started notifying the beneficiaries of the overpayments.
Let’s see who will be affected by the change:
- An individual who was overpaid after March 27, 2025
- All the beneficiaries of Social Security, including Retirees, survivors, and people on disability insurance (SSDI)
Individual who receives SSI (Supplemental Security Income) will not be affected under this new change. Earlier, the SSA could withhold up to 10 percent from your monthly payment, but from the beginning of this month, the SSA will withhold up to 50 percent from your monthly payment until you appeal, ask to waive off, or negotiate with the plan.
What Can I Do with New Social Security Change?
Don’t panic if you have received the overpayment notice from SSA, as you will be given 90 days to take action. Let’s check what you can do in such a situation:
- Request a waiver, even if it is not your fault or you cannot repay the amount.
- Legally appeal the decision of the SSA.
- Ask for a more practicable repayment plan.
However, you must keep in mind that after receiving the notification from the SSA, you cannot ignore it even if it is not your mistake. The SSA will automatically start withholding 50 percent of the payment starting from July 2025.
Who is Getting Benefit in this New Change?
Not all changes by the Social Security Administration (SSA) will result in deduction of benefits. With this new change, millions of people will get increased benefits. If you have ever worked in a job where you have not paid Social Security, such as teachers, police officers, firefighters, or any such public sector worker, and have been impacted by the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO). But after the repeal of these rules by Social Security Fairness Act (SSFA) on January 5, 2025, the government will correct all its past deductions and will start sending the retroactive payment with increased monthly benefits to these people.
The SSA has already released payments worth 3.1 million to these retired workers in each individual receiving an average payment of $6,710. The government introduced the new SSFA to eliminate inequities where non-covered employees were not given equal payment. So, starting from August 2025, these beneficiaries will see adjusted monthly payments.
How Does this Change Matter?
This change is not about updating the buried government paperwork, as these changes have affected the real ones. For some people, this is a long-overdue recognition by the government, particularly those who have contributed their lives in the public sector, and are being penalized unfairly. Whereas for other people, it is about managing the payments and wondering how to compensate if their monthly payment is withheld by 50 percent.
This change by the government is a tightrope walk as it won’t be in favor. So, the government is balancing it out by recovering the overdue payment and correcting the long underpayments.
What Should I Do Now?
Here’s how you can ensure what’s coming your way:
Keep a constant check of your email for notifications, particularly those who might have received overpayments.
- Log in to ‘mySocialSecurity.’ If you do not have one, create a login account.
- Keep an eye on the benefit amount.
- Set up a direct deposit, especially for those who have missed the payment.
- If you are struggling, contact SSA.
- Stay updated as new changes are unfolding.
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