The Social Security Administration (SSA) has informed beneficiaries that there are certain reasons that could lead to the cancellation of these payments in the future. This would imply the denial of access to these public resources. This measure would be applied in specific cases in which the government agency chooses to withhold these funds. The intention is to ensure compliance with certain legal or administrative obligations. We will tell you who would be affected.
Reasons why people could lose their Social Security
According to information provided by the official website of the social security agency, the US Treasury Department has the power to withhold Social Security benefits. The objective would be to “collect overdue federal tax debts”.
The procedure can be carried out by means of a Notice of Levy. This would occur in situations where it is necessary to collect back taxes, or through the Federal Payment Levy Program if there are tax debts. In the latter case, 15% of the monthly benefit is withheld until the debt is settled.
In addition, the department reminds people that Social Security benefits can be withheld if there is a breach of the legal obligation to pay child support, alimony or restitution. In response to this, the SSA clarifies: “By law, we garnish current and ongoing monthly benefits. We do not make retroactive adjustments.” In response to this, beneficiaries should contact the courts directly to resolve any disputes or breaches related to these orders.
Measures to prevent these garnishments
The agency that manages Social Security has published a series of recommendations so that beneficiaries can prevent garnishments and withholdings of payments. Some of these are:
- Periodic review of outstanding debts.
- Compliance with tax deadlines.
- Constant updating of your financial situation with the relevant agencies.
- Maintaining direct communication with the Internal Revenue Service (IRS) and other federal agencies to resolve any debt before seizure proceedings begin.
How much will Social Security increase by in 2025?
On the other hand, the SSA has announced a cost-of-living adjustment (COLA) of 2.5% for Social Security beneficiaries in 2025. This increase is intended to offset the effects of inflation. According to official information, it came into effect in January. However, beneficiaries of Supplemental Security Income payments began receiving this increase on December 31, 2024.
The percentage of cost-of-living adjustments has experienced various variations over the past decade, influenced by economic fluctuations. According to SSA records, recent increases have been:
- 2015: 1.7%.
- 2016: 0%.
- 2017: 0.3%.
- 2018: 2%.
- 2019: 2.8%.
- 2020: 1.6%.
- 2021: 1.3%.
- 2022: 5.9%.
- 2023: 8.7%.
- 2024: 3.2%.
As can be seen, there are large differences in these figures. For example, 2016 was characterized by an absence of increases. Meanwhile, in 2023 there was a maximum increase of 8.7% in 2023, as a result of the inflationary impact of the COVID-19 pandemic. You can consult this and other aids in our economics news section.
