An Aggressive Social Security Garnishment Is Underway for Over 1,000,000 Beneficiaries — Here’s How You Can Legally Avoid It

In May, nearly 53 million retired Americans received Social Security checks. For the first time, the average monthly payment crossed \$2,000. While this isn’t a huge amount, it plays a major role in helping many seniors cover their basic needs.

For over 20 years, Gallup has asked retirees how important Social Security is to their finances. Every year, about 80% to 90% say it’s necessary to pay their bills.

That’s why any changes to Social Security payments are a big deal—especially when the checks get smaller. And that’s exactly what’s happening now. Because of a new rule put in place by President Donald Trump during his second term, over a million people will see their Social Security payments reduced, some by as much as 50%. For many seniors, that could be devastating.

Under Trump, several changes were made to the Social Security system. These included more strict identity checks, stopping paper checks altogether, and forming a new government office called the Department of Government Efficiency (DOGE). This office encouraged the Social Security Administration (SSA) to cut 7,000 jobs and close some offices to save money.

But the most talked-about changes involve how the government is collecting money it says it overpaid to people on Social Security.

One example: About 452,000 people who are behind on federal student loans will soon have 15% taken from their monthly Social Security payments. These loans have been on pause since March 2020, during the pandemic.

Even more concerning is the 50% garnishment currently happening to people who were told they were overpaid by the SSA. This affects not just retired workers, but also survivors of deceased workers and people with disabilities.

Under President Biden, this clawback rate was lowered to 10%. It had been as high as 100% during President Obama’s time and Trump’s first term. In 2022, the SSA said it overpaid more than 1 million people. In 2023, it was almost another million. Since no new data has been released, it’s safe to assume that over 1 million people are still paying back those overpayments.

Overpayments can happen because of mistakes by the SSA or because people didn’t report changes in their income. For example, someone with a disability is allowed to earn a certain amount of money each month without losing their Social Security benefits. But if they make too much and don’t report it, they may have to pay back some or all of the benefits they received.

If you’re one of the people affected, you do have options.

First, you can ask the SSA to waive the repayment completely by filling out Form SSA-632BK. To get approved, you’ll need to prove that the overpayment wasn’t your fault and that paying it back would cause you financial harm. You’ll have to show paperwork for your income and expenses.

Second, you can file an appeal (Form SSA-561) if you disagree with the SSA’s claim that you were overpaid, or if you think the amount they’re asking you to repay is wrong. If the appeal works in your favor, you might not have to pay anything back.

Third, if you agree you were overpaid but can’t afford to lose half your monthly check, you can ask for a lower repayment rate by submitting Form SSA-634. You’ll still need to explain your financial situation and provide proof, but this might stretch the payments over several years instead of one.

These repayment options could help people avoid serious financial stress.

Many Americans are behind on saving for retirement, but some little-known Social Security strategies could help. In fact, one smart move could add up to \$23,760 a year to your income. With the right approach, you might be able to enjoy a more comfortable and confident retirement.