Social Security Alert: Overpayments, Garnishments & Inflation Squeeze Retirees!

Money Explainers

Are you facing reduced Social Security benefits due to overpayments or inflation? Know your rights and options. Stay informed about the latest threats to your Social Security income, from garnishments to the rising cost of living.

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00:00Beyond the trust fund depletion, other factors are hitting Social Security beneficiaries now.

00:05Overpayments and garnishments, a growing concern affecting over a million individuals.

00:10While sometimes due to administrative errors, they can also arise from recipients not reporting

00:15income changes. Imagine a disabled worker exceeding income limits facing a clawback.

00:21The Trump administration intensified these clawbacks, sometimes reaching 100% of the

00:26benefit check. Under Biden, this was reduced to 10%. But a 50% garnishment rate for overpayments

00:32is currently in effect. In recent years, nearly a million beneficiaries annually have been overpaid,

00:38meaning significant reductions in monthly income, income many cannot afford to lose.

00:43If you're facing an overpayment, know your options. You can request a waiver if the overpayment wasn't

00:48your fault and repayment causes hardship. You can file for reconsideration if you disagree with the

00:54decision or the amount. You can also negotiate a lower repayment rate to ease the burden potentially

01:00extending it over 60 months. Inflation adds another layer of pressure. Despite cost of living adjustments,

01:08many retirees still struggle as rising expenses outpace. These increases eroding the purchasing

01:14power of their benefits. What does all this mean for you? Social Security, a vital but challenged

01:20program. Full solvency is at risk, demanding proactive retirement planning. Don't solely rely

01:27on government checks. Financial experts stress early and consistent savings, diversified income

01:33streams, like retirement accounts and investments, are crucial. Staying informed and planning diligently

01:39are your best defenses in navigating. These changes in securing a sustainable retirement,

01:45money expo.

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