Worried about losing part of your Social Security? Here’s what the new overpayment rule means for your check
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If you rely on Social Security to help cover essentials like rent, groceries, or medication, any change in how your benefits are handled can be a big deal.
A recent rule update from the Social Security Administration (SSA) is meant to ease the burden for those who are asked to repay money—but it may still leave many older Americans with serious concerns.
The SSA has announced a new default for recovering overpayments, and while it’s a step in a better direction, the change still leaves some recipients at risk of seeing large cuts to their monthly checks.
Here's what you need to know to stay informed and prepared.
What’s changing—and why it matters
Previously, if the SSA said you had been overpaid, they could withhold up to 100% of your monthly check until the full amount was paid back.
For many, that meant no income at all—sometimes for months.
Now, the SSA has introduced a new default: they’ll withhold 50% of your benefit instead.
That’s a meaningful improvement, but still a big loss for anyone living on a limited income.
To give you an idea, if you receive the average monthly Social Security Disability Insurance (SSDI) payment of about $1,582, a 50% deduction would leave you with only $791 for the month.
Also read: Social Security sends “emergency message”: Key details explained
Why was this change made?
The new rule is a response to public pressure from advocacy groups, lawmakers, and everyday Americans who argued that taking away someone's entire monthly benefit was too harsh—especially without warning.
That said, the new 50% withholding is still more aggressive than the 10% cap that was in place earlier.
Some say this shift still puts vulnerable recipients at risk.
How overpayments happen in the first place
Overpayments occur when the SSA sends more money than it should—whether due to changes in your income or living situation, a disability update, or even a mistake in their own records.
Some people don’t find out about an overpayment until they receive a letter months or even years later, asking for repayment.
Also read: A simple oversight, a lifetime of consequences–How a simple error slashed this woman’s Social Security to just $14
Can they still take your full check?
Yes—under certain conditions.
If your overpayment occurred after March 27, you could still face a 100% clawback unless you appeal.
So even with the new default, some recipients may still see their full check withheld unless they act quickly.
What to do if you receive an overpayment notice
Don’t ignore the letter. Here’s how to respond:
How to avoid future overpayments
While some overpayments are out of your control, there are steps you can take to reduce the risk:
For many older adults, Social Security is a critical lifeline.
Losing even part of it—even temporarily—can lead to hard decisions about which bills to pay or what essentials to go without.
While the SSA says it must recover any excess payments, critics argue that the process still lacks compassion for those struggling to get by.
As former SSA Commissioner Martin O’Malley put it, “It’s half as cruel, but it’s still cruel.”
Read next: Protect your retirement! Beware of these 6 Social Security scams on the rise in 2025
Have you received an overpayment notice? Did you appeal, or work out a payment plan? If so, we’d love to hear how it went. Your story could make all the difference to someone else going through the same thing.
A recent rule update from the Social Security Administration (SSA) is meant to ease the burden for those who are asked to repay money—but it may still leave many older Americans with serious concerns.
The SSA has announced a new default for recovering overpayments, and while it’s a step in a better direction, the change still leaves some recipients at risk of seeing large cuts to their monthly checks.
Here's what you need to know to stay informed and prepared.
The Social Security Administration’s new rule limits overpayment deductions to 50%, but some recipients may still face full check withholdings unless they act quickly. Image Source: YouTube / CBS News.
What’s changing—and why it matters
Previously, if the SSA said you had been overpaid, they could withhold up to 100% of your monthly check until the full amount was paid back.
For many, that meant no income at all—sometimes for months.
Now, the SSA has introduced a new default: they’ll withhold 50% of your benefit instead.
That’s a meaningful improvement, but still a big loss for anyone living on a limited income.
To give you an idea, if you receive the average monthly Social Security Disability Insurance (SSDI) payment of about $1,582, a 50% deduction would leave you with only $791 for the month.
Also read: Social Security sends “emergency message”: Key details explained
Why was this change made?
The new rule is a response to public pressure from advocacy groups, lawmakers, and everyday Americans who argued that taking away someone's entire monthly benefit was too harsh—especially without warning.
That said, the new 50% withholding is still more aggressive than the 10% cap that was in place earlier.
Some say this shift still puts vulnerable recipients at risk.
How overpayments happen in the first place
Overpayments occur when the SSA sends more money than it should—whether due to changes in your income or living situation, a disability update, or even a mistake in their own records.
Some people don’t find out about an overpayment until they receive a letter months or even years later, asking for repayment.
Also read: A simple oversight, a lifetime of consequences–How a simple error slashed this woman’s Social Security to just $14
Can they still take your full check?
Yes—under certain conditions.
If your overpayment occurred after March 27, you could still face a 100% clawback unless you appeal.
So even with the new default, some recipients may still see their full check withheld unless they act quickly.
What to do if you receive an overpayment notice
Don’t ignore the letter. Here’s how to respond:
- Read the notice carefully. Understand what the SSA says you owe and why.
- Check for errors. Compare it with your own records—mistakes do happen.
- Request a waiver or appeal. If you believe you weren’t overpaid—or if repayment would cause financial hardship—you can file a waiver or appeal. The SSA must pause collections while they review your request.
- Ask for a payment plan. If you do owe money, you may be able to reduce your monthly repayment amount based on your current financial situation.
How to avoid future overpayments
While some overpayments are out of your control, there are steps you can take to reduce the risk:
- Promptly report changes in income, living arrangements, or health status.
- Review your benefit statements regularly.
- Keep detailed records of your communications with the SSA.
For many older adults, Social Security is a critical lifeline.
Losing even part of it—even temporarily—can lead to hard decisions about which bills to pay or what essentials to go without.
While the SSA says it must recover any excess payments, critics argue that the process still lacks compassion for those struggling to get by.
As former SSA Commissioner Martin O’Malley put it, “It’s half as cruel, but it’s still cruel.”
Read next: Protect your retirement! Beware of these 6 Social Security scams on the rise in 2025
Have you received an overpayment notice? Did you appeal, or work out a payment plan? If so, we’d love to hear how it went. Your story could make all the difference to someone else going through the same thing.
