In July, millions of beneficiaries will receive their monthly Social Security payments. However, older Americans and individuals with disabilities may notice a significant reduction in their checks. This decrease is linked to a new initiative by the Social Security Administration (SSA) aimed at recovering past overpayments.
Social Security is recovering past overpayments
The SSA provides monthly benefits to roughly 69 million people, including retirees, survivors of deceased workers, and disabled individuals. If a beneficiary is found to have received more funds than they were entitled to, the SSA will begin the process of collecting that excess amount. This could stem from miscalculations in benefits or unreported changes in marital, income, or disability status.
Previously, the SSA would withhold 10% from future payments to recover debts. Starting at the end of July, this withholding rate will increase to 50%. This means affected individuals will see half of their monthly payments go towards repaying the debt until it’s completely settled.
Beneficiaries facing payment reductions
The exact number of beneficiaries who have received these excess payments isn’t entirely clear. However, data from Freedom of Information Act requests indicate that the SSA is trying to reclaim inappropriate payments from around 2 million people for the fiscal year concluding in September 2023.
It’s important to note that many of those affected are recipients of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
If you think you might be affected, you can check your online statements or contact the SSA to understand what you owe and discuss repayment options that could ease your financial burden.
Social Security Payment Schedule for July
Social Security benefits are typically paid on Wednesdays each month, based on the beneficiary’s date of birth. For those who started receiving benefits in May 1997 or earlier, payments will be deposited on July 3rd. The rest will receive their payments according to the following schedule:
- Wednesday, July 9th: Beneficiaries born between the 1st and 10th of the month
- Wednesday, July 16th: Beneficiaries born between the 11th and 20th
- Wednesday, July 23rd: Beneficiaries born between the 21st and 31st
For additional information about the 2025 and 2026 payment calendars, please consult the official SSA website to assist with your financial planning.
