Retirees are bracing for potential cuts to their Social Security benefits as a new overpayment “clawback” policy takes effect later this month.
The Social Security Administration announced last Friday that it will increase the default overpayment withholding rate for beneficiaries to 100%. That means that down the road, a beneficiary could see their entire monthly payment withheld if they received large enough overpayments. The announcement is a sharp reversal of a Biden-era policy that capped the overpayment recovery at 10% of a person’s monthly benefit.
