Adulting is hard, period. Inflation won’t let up, and the cost of living has become very expensive; sometimes we end up having to choose which items and utilities are most essential. To add some fuel to the fire, the SSA has announced a massive check reduction (cue the inward groans). As of July 24, one group of citizens can expect a check reduction of 50%. Check today if you will be affected by this reduction.

SSA benefits are crucial

The Social Security Administration (SSA) is a federal agency that contributes additional income to millions of eligible Americans every month in the form of Social Security, mainly in cases of retirement, survivors of workers, and in cases of disability. The funds for the Social Security program are provided by a dedicated payroll tax, which is reliant on the wage contributions of both employers and employees.

Many beneficiaries have been experiencing a complete emotional overload since the SSA’s latest announcement of a 50% cut in benefits, starting July 2025. Many people have wondered what the reason could be behind such a rash decision. The cut reportedly only affects one group of people, possibly suspects who received overpayments.

This is why Social Security benefits will be cut

We are all human and tend to forget important things, such as reporting crucial life changes to the SSA, including changes in income, disability conditions, and marital status. According to Marca, over a period of seven years, the SSA distributed $72 billion incorrectly due to wrongful reporting by beneficiaries. Before, only 15% of a recipient’s benefits were deducted to recover overpayments. The SSA was still out $23 billion by the end of 2023.

Of course, the agency is not completely innocent when it comes to the overpayments, but it is done being ‘Mr. Nice Guy.’ Initially, the agency planned on cutting 100% of benefits, according to its March 2025 statement, but after a lot of criticism, they opted for a 50% cut instead.

How the cut works

On April 25, 2025, the agency started issuing overpayment notices. 90 days after the notice is issued, the 50% cut in benefits will be in effect until all overpayments have been paid back. Overpayments can also be repaid by credit card, online bill pay, or check. According to the SSA official website, you can also request an exemption if the overpayment was not your fault or if you truly cannot afford it. The form is available on the official website.

This group of people will be affected by the cut

The cut in benefits will reportedly kick in on July 24, 2025 (which is approximately 90 days after the overpayment notices were initially issued). In the cases where the SSA is completely innocent, people who are most likely to receive overpayment notices include:

  • Beneficiaries of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI)
  • Survivors and retirees who lost a family member

Take note that the above list is not an attack on these specific beneficiaries, but merely a list of beneficiaries who most likely forgot to report crucial changes in their income and/or resources, changes in their living conditions, and/or any changes in their disabilities.

While the agency must rectify incorrect payments, the dire effects of the benefit cuts on beneficiaries are inevitable. Almost one-third of people rely on Social Security benefits for 75% or more of their income. In a world where the cost of living is impossibly high, these people will be forced to choose between health care, food, or their homes. So, if you have experienced any crucial life changes, report them immediately, as your entire well-being depends on it! Just keep in mind that reporting changes over the phone is no longer an option.

Disclaimer: This content is informational only and does not supersede or replace the SSA’s or IRS’s own publications and notices. Always verify any specific dates and amounts by following the direct links in our article to SSA.gov or IRS.gov, or by consulting your local SSA field office or tax professional.