In May, a major milestone was reached: the average Social Security check for retired workers crossed the $2,000 mark for the first time. While that amount might not seem like much in today’s economy, it’s a lifeline for millions of older Americans trying to stay afloat in retirement.
Gallup surveys over the past two decades consistently show that around 80% to 90% of retirees depend on their monthly Social Security checks to cover basic living expenses. So when anything threatens that income, even a small reduction, it sends shockwaves through households across the country.
Policy Change Could Slash Checks for Over a Million Recipients
Under Donald Trump’s current term in office, there has been significant changes to Social Security. Some of the new policies include tighter identity verification requirements, the phasing out of paper checks, and deep budget cuts that have led to the loss of 7,000 jobs at the Social Security Administration (SSA) and the closing down of local offices across the country.
But the biggest flashpoint? The return and expansion of benefit garnishments.
Older Americans with outstanding federal student loans were largely impacted. Around 452,000 retirees who’ve fallen behind on payments are about to see up to 15% of their monthly Social Security checks withheld. That garnishment is expected to start later this summer, ending a pause that’s been in place since the early days of the COVID-19 pandemic.
Even more alarming is what’s happening to another group: more than a million Social Security recipients including retirees, survivors, and vulnerable populations are facing garnishments of up to 50% due to alleged overpayments. Many of these individuals were never properly informed of the issue or are struggling to appeal in a system that’s been gutted by staff cuts and slowdowns.
Overpayment Clawbacks Return in Full Force
Social Security overpayments aren’t a new issue, but how they’re being handled has shifted dramatically. During Joe Biden’s administration, clawbacks were capped at just 10% of a person’s monthly check. Under Obama and Trump’s first term, they could take the entire check. Now, in Trump’s return to the White House, the garnishment rate is back up to 50% in many cases.
SSA data shows more than 1 million overpayment letters were sent in financial year 2022, and nearly as many again in 2023. While updated numbers haven’t yet been released, it’s safe to say many people are still facing steep deductions as they repay money the SSA says they never should have received in the first place.
Why Overpayments Happen
Overpayments can happen for a couple of reasons, either the SSA makes a mistake, or beneficiaries don’t report changes in their income or personal situation. Take a disabled worker, for example. In 2025, they can earn up to $1,620 a month without it affecting their benefits. But if they start pulling in, say, $3,000 a month and don’t let the SSA know, the truth will eventually surface.
The real kicker? Most people don’t even know anything’s wrong until a surprise letter shows up in their mailbox, claiming they owe the government thousands of dollars. No warning. No heads-up. Just a demand to pay it back, sometimes years after the fact.
Options for Fighting or Reducing Garnishment
If you’ve received one of these letters, all hope isn’t lost. There are a few paths you can take:
- If you think that the overpayment was not your fault, request a waiver, you can file Form SSA-632BK to ask for a waiver. You’ll need to provide proof of your financial hardship, like bills or income statements.
- If you believe the SSA is wrong or the amount is incorrect, you can file Form SSA-561, a request for reconsideration. If approved, your repayment could be reduced or cancelled altogether.
- Even if you accept the overpayment claim, you can still ask to pay it back at a slower pace. By filing Form SSA-634, you can explain your situation and request a smaller monthly deduction.
Bottom Line: Watch Your Mailbox and Know Your Rights
For millions of Americans, Social Security isn’t just a benefit, it’s their lifeline. But lately, some recipients have been caught off guard as their monthly checks suddenly shrink with little to no warning. If this happens to you, don’t just set the letter aside. Read it carefully, figure out what’s going on, and take action.