Social Security reduces benefit clawback from 100% to 50% for some; experts still warn of 'devastating' effects

Just weeks after announcing a 100% withholding rate on new overpayments of benefits, the Social Security Administration has slashed the rate down to 50% for certain beneficiaries.

Just weeks after announcing a 100% withholding rate on new overpayments of benefits, the Social Security Administration has slashed the rate down to 50% for certain beneficiaries.

Yet that clawback on monthly benefit checks may still cause a financial burden for individuals who are affected, experts say.

For new overpayment notices sent on or after April 25, the 50% default withholding rate will apply to so-called Title II benefits, which include retirement, survivors and disability insurance, according to an emergency message released by the Social Security Administration.

The withholding rate for Supplemental Security Income benefits remains 10%.

“Obviously, it’s better not to lose all of your income,” said Kate Lang, director of federal income security at Justice in Aging, a national organization focused on fighting senior poverty.