Time will end in about 2 million Americans when their social security benefits decreased in half.
And it has nothing to do with the impending lack of social security reserves. It’s eight more years.
This month, starting with reduced benefits as the Social Security Administration (SSA) is trying to recover money that some Americans overpay. Social security will hold 50% of the beneficiary’s monthly check until their overpayment is refunded.
SSA spends almost $ 1.4 trillion a year on about $ 73 million for social security and SSI recipients. Excessive payment can occur when the beneficiary does not renew, for example, a change in income or when SSA miscalculates a person’s benefits.
The law requires the agency to try to recover or recover money when overpayments occur.
“We should recover contributions, but we still worry about any recovery percentage impact on less financially stable pensioners,” Shannon Benton, Executive Director of Senior Citizens League, told Yahoo Finance.
During the biden administration, the default deduction percentage was reduced to 10% of the beneficiary monthly benefits compared to 100%, which significantly reduces financial difficulties for those with overpayments.
However, in March, Trump’s administration announced that the agency would again arrest 100% of the personal inspection of a person’s social security until all overpayments were refunded. After defenders and seniors, April, the interest rate was reduced to 50%, and the agency said it would start receiving about $ 72 billion in incorrect payments made in 2015-2022, from July.
This is still a serious problem for many seniors. “Some pensioners don’t care if it is 1%or 100%,” Benton said. “Any amount of chant can be catastrophic.”
Inappropriate benefits accounted for less than 1% of all benefits paid during that period, but in 2023 At the end of the fiscal year, the SSA was not collected by the $ 23 billion overpayment, according to 2024. August In the report of the General Inspector.
Read more: When will I get my social security check? 2025 Payment schedule.
The deduction is expected to begin with social security benefits made about July 24. The deduction percentage remains 10%for additional security revenue benefits.
Those who fall into this Clawback had to get a message. The recipients have 90 days after receiving the message.
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