New Social Security Changes Impacting Millions of Retirees

Recent adjustments have occurred since President Donald Trump took office, particularly in U.S. foreign trade and tariff policies affecting over 180 countries. Beyond these trade changes, significant modifications to Social Security will impact more than 50 million retirees relying on this vital program.

Below, we highlight two crucial changes in Social Security, alongside a discussion of potential effects stemming from tariffs.

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1. Full Recovery of Social Security Overpayments Returns

Social Security is not without errors, which can range from simple address updates to overpayments. In cases where recipients receive more than their entitled benefits, the Social Security Administration (SSA) has a process to reclaim this amount. Previously, if an overpayment occurred, the SSA would recoup the funds by deducting 10% from future monthly payments.

For instance, if your monthly benefit is $2,000 and you receive $2,500 due to an error, the SSA would deduct $50 over the following 10 months to recover the $500 excess. However, this approach has now changed.

Effective March 2024, if an overpayment occurs, the SSA can withhold the entire payment until repayment is complete. For example, if your monthly benefit is $2,000 and you mistakenly receive $3,000, your next check will be $1,000. In another scenario where you receive $2,500, your next payment would be $1,500.

The upside is that you can appeal this decision or request a waiver if you can demonstrate that the overpayment wasn’t your fault and repaying would cause financial hardship. To initiate an appeal, submit the Request for Waiver of Overpayment Recovery form to your local SSA office via fax or mail.

2. Stricter Identity Verification Procedures Implemented

As of April 14, the SSA has tightened its identity verification processes. For minor updates like changing direct deposit details or addresses, you can simply use your account on the SSA website. If you haven’t created an online account yet, you should do so by setting up a login and verifying your identity.

If you prefer not to use the online services, you will need to visit your local Social Security office with a valid government-issued ID to modify or initiate your benefits. The SSA offers a locator tool to help you find the closest office by your zip code.

It’s essential to confirm the status of your local office since several Social Security locations may close this year.

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