Bad news for beneficiaries of Social Security in the United States who have received an overpayment by mistake. The Social Security Administration (SSA) has announced that starting from July 24, 50% of the amount of benefits received by beneficiaries will be withheld to recover the overpaid amounts they may have received. Both Social Security Disability Insurance (SSDI) beneficiaries, Supplemental Security Income (SSI) recipients, and retirees will see their monthly amount reduced by half.
What can they do about it? Social Security offers payment plans tailored to different needs, a one-time debt payment through the beneficiary’s profile on My Social Security, and even appeals if the affected individual can prove they cannot cover expenses with the amount received.It is important that you review your Social Security profile and ensure whether you have incurred any debt with the administration without being aware, as those reductions will be applied to you regardless.
Social Security Administration (SSA)
The Social Security Administration (SSA) of the United States is the government entity that manages the national social insurance program, which consists of insurance programs for retirees, survivors, and disability. There are also food assistance programs such as SNAP, Supplemental Income, or Income for legally recognized disability.
Social Security overpayments
Between 2015 and 2022, the Social Security Administration reported that the amount of overpayments or improper payments totals $72 billion. Viewed from a perspective, this is only 1% of the revenues generated by Social Security, but it is a good reason and a good way to collect the money that the state desperately needs. That is why, since last April, the administration has informed all those affected of their irregular situation, granting a period of 90 days to rectify it. The problem is that the vast majority of those affected have not received any kind of notification, and now in July, after the deadline, they see how their income is reduced by half every month.
Who is affected by these restrictions?
The Social Security announced that as of July 24, 2025, the automatic reduction of 50% of the amounts of the aid received by beneficiaries will be implemented. Logically, these deductions will only affect those who have received an overpayment or improper payment. However, it does not distinguish between types of aid. This means that it does not matter what type of social aid is received, none are exempt from restrictions if you have a debt with the administration. This is why both those who receive checks for their retirement, Social Security due to disability (SSID), or Supplemental Security Income (SSI) will be affected by this reduction, without exception.
How do these reductions work?
First of all, you need to ensure whether you are one of the affected individuals. To do this, you can contact Social Security or check it in your profile by accessing My Social Security. Once you know you are one of the affected, it’s important to keep reading. Social Security will start applying restrictions automatically from July 24, 2025. We already know it will be 50%, but that amount is not viable for all beneficiaries.
Many of them live solely from this source of income, which would make life very difficult for them. For this reason, it is important to check the total amount of debt you have with the SSA. If you can demonstrate that the received amount poses a problem for accessing basic necessities, the Administration is open to negotiation. That is why it is important to act in a timely manner, contact them, and see what options they can offer that best fit your needs.
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