Some Social Security Recipients May Get Smaller Payments

 Newsweek - Some Social Security recipients will begin receiving reduced monthly payments starting in late July, as the Social Security Administration implements new overpayment recovery policies. The SSA announced in April that it would begin withholding 50 percent of benefit payments from recipients who have been overpaid, representing a significant increase from the previous 10 percent withholding rate. This policy change affects approximately 2 million Americans who received Social Security overpayments, according to data from the SSA's efforts to reclaim overpayments in fiscal year 2023.

The new 50 percent withholding rate could substantially impact household budgets for vulnerable populations who rely on Social Security as their primary income source. The change comes as the SSA seeks to recover $23 billion in uncollected overpayments as of September 2023.