In 2025, the Social Security Administration (SSA) rolled out a significant change: up to 50% of your retirement payment may be withheld to recover overpayments. This article explains the what, why, and how, ensuring you’re fully informed and prepared.
What’s Happening? The 50% Withholding Update
- Starting late July 2025, SSA began withholding up to 50% of monthly retirement, survivor, family, and SSDI benefits for recipients who received an overpayment and did not act on the SSA’s notification within 90 days.
- This change applies only to new overpayments identified via notices issued on or after April 25, 2025. Prior overpayments continue under the previous 10% cap, and SSI benefits remain capped at 10% for now.
- SSA had initially announced a move to 100% withholding in March, but reversed to 50% following public criticism.
Why the Change? The Overpayment Challenge
Overpayments—where beneficiaries receive more than they’re owed—occur due to reporting delays or calculation errors.
Between 2015 and 2022, SSA issued nearly $72 billion in improper payments. As of late 2023, about $23 billion remained uncollected. The new 50% withholding is intended to accelerate recovery.
Timeline of Key Actions
| Date | Action / Policy Change |
|---|---|
| March 27, 2025 | SSA initially reinstated 100% withholding for new overpayments. |
| April 25, 2025 | SSA issued emergency guidance shifting default withholding to 50%, if no response. |
| Late July 2025 | 50% withholding for new overpayments began; first affected checks reflect this. |
| Prior Overpayments | Still subject to 10% withholding; SSI remains capped at 10%. |
What This Means for You
If you receive an overpayment notice after April 25, 2025, and do nothing within 90 days, SSA may:
- Withhold up to 50% of your monthly benefit.
- Continue deductions until the overpayment is fully repaid.
Your payments could be cut drastically—some are seeing their August checks slashed by half.
Your Rights & Options
- Appeal or Reconsideration: If you believe the overpayment is incorrect, you can dispute it.
- Waiver Request: If repayment would cause financial hardship or the error was SSA’s, you can request a waiver.
- Lower Repayment Rate: Ask for a smaller deduction, such as $10/month. SSA must pause withholding if there’s an active appeal or waiver request.
Summary Table: Withholding Rates
| Benefit Type | Previous Rate (2024) | New Rate (for notices after April 25, 2025) |
|---|---|---|
| Retirement / SSDI / Survivor | 10% | Up to 50% |
| SSI (Supplemental Security Income) | 10% | Remains 10% |
| Overpayments before April 25, 2025 | 10% | Continue at 10% |
The SSA’s updated policy—now enabling up to 50% withholding of retirement benefits for new overpayments—marks a significant shift from the gentle 10% cap of 2024.
It is vital to act swiftly upon receiving a notice: appeal, request a waiver, or negotiate a smaller repayment. Staying informed and prompt can protect your financial stability during these challenging changes.
FAQs
Can SSA just take 50% of my retirement check without warning?
Yes—if you receive an overpayment notice issued after April 25, 2025, and don’t respond within 90 days, SSA can withhold up to 50% of your benefit.
What if SSA made the mistake—not me? Can I get relief?
Absolutely. You can request a waiver of repayment if the overpayment isn’t your fault or repaying it would cause hardship. SSA must halt collections while reviewing your request.
Can I pay back less than 50%?
Yes. You can negotiate a lower repayment rate (e.g., manageable fixed amount). SSA must consider your ability to pay and accept reasonable offers.