Retirees in the United States could face an unexpected problem with their monthly finances. Starting this summer, many are discovering that their Social Security check no longer arrives with the full amount. If you are a Social Security beneficiary in the US, it's time to pay attention, because you could see a reduction in your monthly payment.
Beginning in July 2025, the Social Security Administration (SSA) has started to apply automatic deductions to benefit payments for thousands of retirees. The reason is the recovery of money that, according to the agency, was given out by mistake in previous years. These "improper payments" occurred between 2015 and 2022, and now SSA is trying to recover those funds.
United States Social Security recovers overpaid amounts
According to a report from the Office of the Inspector General, more than $72 billion in benefits that weren't owed may have been paid out. Although this figure represents less than 1% of the total payments made by SSA, the consequences are significant for the affected individuals. The most serious issue is that many retirees didn't know they had received more money than they were entitled to, and now they will have to pay it back.
Starting at the end of July 2025, SSA will apply withholdings of 50% on the monthly payments of those who received these incorrect payments. This change marks a shift in the agency's policy. Until now, the standard deduction was only 10%.
In fact, at the beginning of the year, there was consideration of fully suspending the benefits of some beneficiaries until they paid off the debt. However, that option was ultimately discarded due to its severity.
The first notices began to arrive by mail starting April 25, 2025. From that moment, those affected have had about 90 days to review their situation. However, many have been surprised to see their check reduced without prior notice.
This has caused concern, especially among older adults with fixed or limited incomes. Martin O’Malley himself, former director of SSA, expressed his concern about the measure, warning that many could be harmed by these cuts. With good reason: a 50% reduction in monthly benefits can mean the difference between paying rent or not.
If you notice that your Social Security check has been reduced, you are likely among the group affected by this measure. In that case, you can file an appeal or request an alternative payment plan. However, you should keep in mind that these processes are usually slow and require additional documentation.