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Social Security Change Coming in July: Agency Begins Taking Back 50% of Overpayments

  • Beginning in late July 2025, the Social Security Administration started deducting half of the monthly benefits from individuals who were notified of having received an overpayment.
  • This action follows the SSA's initial March 2025 announcement to withhold 100% of benefits, a policy later reduced to 50% after negative media coverage and public backlash.
  • As of September 2023, the SSA faced $23 billion in uncollected overpayments and has tried reclaiming funds from about 2 million beneficiaries, with approximately 493,775 paper checks still issued monthly.
  • The SSA stated the average retired worker receives $2,002.39 monthly and added recipients were notified of overpayments in April, with withholding beginning about 90 days after the notice.
  • These measures aim to recoup improper payments totaling nearly $72 billion from 2015 to 2022 but may reduce some beneficiaries’ monthly income significantly starting July 2025.
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Des Moines RegisterDes Moines Register
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Social Security change coming in July: Agency begins taking back 50% of overpayments

The Social Security Administration, which overpays billions in benefits annually, will start withholding some benefits sent to overpaid recipients.

·Des Moines, United States
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Gestion broke the news in on Saturday, June 28, 2025.
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