Just weeks after announcing a 100% withholding rate on new overpayments of benefits, the Social Security Administration has slashed the rate down to 50% for certain beneficiaries.
Yet that clawback on monthly benefit checks may still cause a financial burden for individuals who are affected, experts say.
“Obviously, it’s better not to lose all of your income,” said Kate Lang, director of federal income security at Justice in Aging, a national organization focused on fighting senior poverty.
“But if you’re relying on your benefits to pay your rent or your mortgage and buy food, losing half of that income is going to be devastating and can still result in people becoming homeless,” Lang said.
