Millions of seniors who depend on Social Security are waking up to smaller checks this month after the federal government began collecting on years of overpayments—many of which the recipients say they didn’t even know had happened.

Roughly 2 million people will see half of their monthly benefits withheld as the Social Security Administration (SSA) moves to recover billions of dollars mistakenly paid out between 2015 and 2022. It’s a move that’s catching many off guard, especially those already living on tight budgets.

“I opened the letter and thought it was a scam,” said Edna Morales, 71, from Fresno, California. “They said I owe money from 2016. I barely remember what I ate last week. Now they’re cutting my check in half.”

Years of Errors, Quietly Reversed

The SSA says it overpaid tens of billions during the seven-year period, often due to incorrect income reporting, benefit miscalculations, or systemic processing failures. By the end of fiscal year 2023, more than $23 billion in overpayments remained outstanding, according to the agency’s own inspector general.

To recoup that, the agency is using a default withholding rate of 50% per month, starting with checks issued around July 24. The change follows a controversial policy shift this spring that briefly proposed withholding 100% of benefits, before being scaled back after public pressure and intervention by lawmakers.

The decision has triggered a wave of concern from advocacy groups and legal aid organizations that work with retirees.

“These aren’t fraud cases. These are accounting errors the SSA failed to flag in real time,” said Cynthia James, a senior advocate at the National Committee to Preserve Social Security and Medicare. “And now, people are being asked to pay for mistakes they had no hand in.”

Notifications Came Late — Or Not at All

Most affected recipients received written notices from the SSA, but many say those letters arrived with little warning — and often with language that left them confused about their options.

In one case, a 74-year-old widow in Michigan said she was told she owed $12,000 for an overpayment from 2017. When she called for clarification, she was placed on hold for over an hour before the line disconnected.

Others say they never received a notice at all and only realized their check had been reduced when it arrived.

Seniors Have Options — But Few Know It

Under SSA policy, recipients flagged for overpayment have 90 days to respond. They can appeal the amount, request a repayment waiver, or apply for a reduced withholding rate.

Those with hardship cases are encouraged to fill out Form SSA-634, which asks the agency to lower the monthly deduction. But the process is bureaucratic, time-consuming, and for many seniors, completely unfamiliar.

If a repayment would cause significant financial distress — or if the recipient believes the overpayment wasn’t their fault — they may request a waiver entirely. Whether or not it’s granted is up to SSA discretion, and many waiver requests are denied.

“The system is not user-friendly,” said James. “If you’re in your 70s or 80s and not tech-savvy, getting through this process without help is nearly impossible.”

Congressional offices often serve as a last resort. Every member of Congress has a constituent services team that can intervene in Social Security cases, but few retirees know that help is available — or how to get it.

Not a Future Crisis — A Current One

This collection effort is not connected to Social Security’s long-term funding issues, which are projected to deplete reserves by 2033. This is about fixing past mistakes — now — and the burden has landed squarely on seniors.

While some recipients may be able to absorb the cut, many cannot. For those living on fixed incomes, even a 10% reduction can be destabilizing. A 50% cut is devastating.

“I worked 45 years and never missed a payment into the system,” said Morales. “Now they’re taking money back like I did something wrong. I didn’t. They did.”

What You Can Do If You’re Affected

If you’ve received a notice from SSA or your July payment is lower than expected, you have options:

Appeal the Decision

If you disagree with the overpayment amount — or believe there was no overpayment at all — file a Request for Reconsideration (SSA-561) within 60 days of the notice.

Ask for a Waiver

If repaying would create financial hardship and the error wasn’t your fault, request a Waiver of Overpayment Recovery (SSA-632). There’s no deadline to file.

Reduce the Deduction

If a 50% cut is too steep, ask for a smaller repayment rate using Form SSA-634. Explain your monthly expenses and income.

Contact Your Representative

Every congressional office has a caseworker for Social Security issues. Reach out — they can often expedite a review or flag your case for hardship consideration.

What’s Still Unclear

While the SSA says it notified impacted recipients, many say they were blindsided — learning of the cuts only when their July deposit arrived short.

And although the Biden administration once lowered clawback rates to 10%, the Trump-era rule to withhold 100% was briefly reinstated earlier this year, before public pressure forced the agency to settle on the current 50%.

Meanwhile, the policy has drawn bipartisan criticism for punishing retirees for agency mistakes.

Also Read: Lost Your Social Security Benefit? Here’s What You Can Do to Get It Back

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