It's true that some Social Security recipients will be getting smaller checks starting this month, but don't let the headlines worry you -- that's only about one or two percent of those who get a monthly check.
The USA Today headline screams: "Social Security Change Coming In July: Agency Begins Taking Back 50% of Overpayments," but while it may scare people who are actually on Social Security or their loved ones, it's not a big deal, one expert says.
"If Social Security has not contacted you about needing a repayment because they've overpaid you on your monthly check in the past, this is nothing to worry about," says Bankrate investing analyst James Royal.
The Social Security Administration has accidentally paid too much money to some recipients and it's just trying to get it back, that's all. This year, it's been recouping that cash by pulling 10-percent out of a tiny number Social Security checks each month until the money's repaid, but then the administration decided to start deducting up to 100-percent from monthly checks until full payback is received.
Well, that didn't go over well with anyone, Royal says, so they halved it to a maximum 50-percent draw on each monthly check, but these deductions are not just coming out of the blue. If a recipient hasn't already gotten a notice that they've been overpaid, they can count on full Social Security checks this year.
"That 50-percent of a paycheck is going to take a sizeable portion of one's monthly pay..."
...But there are ways to fight it if you're one of those very few who find themselves with smaller checks, Royal says.
"Just file a complaint with Social Security saying, Hey, you need to investigate to see if I really have been overpaid to begin with, and that'll stop the clock on that overpayment until your assertion has been investigated."