Why Some Social Security Recipients Could See Their Benefits Cut This Month

Starting this month, some Social Security recipients could see their benefits cut in half. According to an article by Money magazine, the government will now begin reducing benefits from those recipients who received an overpayment in the past.

As the article explains, “Social Security overpayments happen when the government sends more money than someone is eligible to receive.” This could be due to the recipient not providing accurate information or a mistake, often a miscalculation, on the part of Social Security.

Regardless, the Social Security Administration (SSA) is legally required to try to recover the funds, even if the recipient had no idea they were being overpaid. The government does this by withholding benefits. It can withhold up to 50 percent of future monthly benefits until it has recovered the full amount of the overpayment.

In late April, the SSA began issuing overpayment notices. Recipients were warned that if they did not respond within 90 days, half of their monthly benefits would be automatically withheld. That 90-day window is now up. This means some beneficiaries could see reductions starting in August.

The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.