If you or someone you care about depends on Social Security, I’ve got some bad (and really, infuriating) news to tell. Starting July 24, over one million retired employees, disabled workers, and survivors could have their Social Security benefits cut by up to 50%.
The why? A deadline on paperwork is looming, and if action isn’t taken, the Social Security Administration (SSA) will begin taking funds directly out of monthly checks. Let me lay it all out for you—and yes, there are means to rebel against this.
Why is this happening?
All this totals up to something called “overpayments.” The SSA is explaining that some people got too many checks, sometimes due to changes in income or record mistakes.
The catch is that most of these overpayments aren’t even the mistake of the people getting the checks. They happen due to SSA errors. Still, the agency is asking for it back.
To do that, they’re reinstating a strict rule enabling them to seize 50% of monthly Social Security benefits. That’s half your check lost. And yes, this used to be 10% under the Biden administration, but the stricter rule is now reinstated.
Who’s at risk?
The people at most risk are:
- Retirees
- People with disabilities
- Survivors receiving benefit checks
- Anyone who got a notice of overpayment but hasn’t yet reacted
And then there’s another group of people in trouble: more than 450,000 retirees will see 15% of their checks taken because of unpaid federal student loans. That’s a different kind of headache, but the end result is the same—less money in your pocket.
What can you do right now?
If you were one of the ones getting an SSA notice in April, you had 90 days to act. That deadline is arriving quickly—July 24 is your cutoff before they start holding back your money.
These are three ways to protect yourself:
1. Ask for a waiver
Complete Form SSA-632BK asking the SSA to waive the debt. You will need to furnish:
- The overpayment wasn’t your fault
- Paying it back would cause financial hardship
2. Request for reconsideration
Feel there wasn’t an overpayment, or that the amount’s wrong? Then fill out Form SSA-561. Add any proof or documents to support your case.
3. Adjust the payment plan
Even if you do owe, you might not be able to survive on half your check missing. That’s where Form SSA-634 comes in handy. Fill it out to request a lower rate of repayment, maybe breaking it into five years.
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Why does this matter so much
For the majority of people, Social Security is the sole source of support. A Gallup poll states 86% of retirees rely on these checks as their main source of income. Losing half of that can equate to skipped rent, forgotten medications, or no groceries.
So if this occurs to you, don’t procrastinate. Completing the proper form can be the difference between receiving your full check and losing a lot of it.
Need help figuring out which form to use? I’m here to guide you through it. Let’s make sure no one gets caught off guard.
