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4w ago

Social Security to Resume Full Benefit Withholding for Overpayments Starting Thursday

The policy change, aimed at recovering $7 billion over a decade, has raised concerns about financial hardship for vulnerable beneficiaries.

The average monthly Social Security benefit increased from $1,927 to $1,976 in 2025 after the cost-of-living adjustment this year, according to the Social Security Administration.
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Overview

  • Starting March 27, 2025, the Social Security Administration (SSA) will withhold 100% of benefits for new overpayment cases until the debt is repaid.
  • Supplemental Security Income (SSI) overpayment recovery will remain capped at 10%, as will rates for existing overpayment cases.
  • The SSA aims to recover $7 billion over the next decade, addressing $23 billion in uncollected overpayments as of September 2023.
  • Critics warn the policy could cause severe financial hardship for seniors and disabled individuals who rely heavily on Social Security for income.
  • Cost-cutting measures, including workforce reductions and office closures, have made it more difficult for beneficiaries to access assistance or appeal overpayment decisions.