Why Is Social Security Withholding 50% of Benefits?

The Social Security Administration (SSA) has updated its overpayment recovery rules.

As of April 25, 2025, the default withholding rate for certain Social Security overpayments has been reduced from 100% to 50% for new Title II overpayment notices.

While this is an improvement from a full 100% withholding, losing half of a monthly benefit can still create serious financial strain.

This episode explains what changed — and what you should do if you receive an overpayment notice.

What You’ll Learn

• What a Social Security overpayment is • Why the SSA previously withheld 100% • Why the default rate is now 50% • Who the new rule applies to (Title II benefits) • What remains capped at 10% (SSI and prior cas ...