SSA Implements New Withholding and Eligibility Policies

As May 2025 approaches, Social Security beneficiaries in the U.S. face new risks including the resumption of garnishments for defaulted federal student loans and stricter eligibility requirements that could suspend or end benefits for some groups. President Trump's proposal to eliminate taxes on Social Security benefits is favored by retirees but may jeopardize the program's long-term solvency without a plan to make up for lost revenue. The Social Security Administration has reinstated a 100% withholding rate for overpayments, replacing the previous 10% cap, requiring beneficiaries to closely monitor their accounts for errors and scams. Claiming benefits before full retirement age can permanently reduce monthly payments and overall lifetime benefits. SSDI recipients who exceed income limits or are absent from the country for long periods risk losing benefits. Beneficiaries are encouraged to stay informed, verify their account information, and understand new SSA security measures to ensure uninterrupted payments.