Social Security is a lifeline for millions of Americans. The program dished out about $1.6 trillion last year to 69 million Americans — 52 million of them retirees. While the program was originally meant to be just one part of a “three-legged stool” that included pensions and personal savings, Social Security has become the main financial support for many as traditional pensions have mostly disappeared and savings dwindled. One in seven retirees rely almost exclusively on the monthly checks.

It’s an important program, to say the least. Seniors are understandably sensitive to any changes to it. President Donald Trump campaigned on the promise to “not cut one penny from Social Security” and has so far kept his promise, at least for the benefits themselves.

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His administration is shaking things up at the Social Security Administration (SSA) in an attempt to cut admin costs. To start, the agency is shrinking its workforce and closing a number of offices. It’s also pushing through a number of rule changes that retirees need to know about now.

The overpayment rules just changed

Occasionally, the SSA will miscalculate and overpay a benefit. When this happens, the SSA will deduct the amount of overpayment from future checks until the overpayment is collected. Under the Biden administration, there was a limit of 10% that could be collected from any one check. This means recovery was spread over many months. If, say, you received a benefit check for $3,000 when you should have received $2,000, the SSA could take a maximum of $200 from subsequent checks until the agency was repaid.

Now, the SSA has removed the cap. Instead, it can take the entirety of any one check if need be. In our example, instead of the SSA reducing your $2,000 check by $200 for five months, it will reduce one check by $1,000. It’s still possible to work something out with the SSA if this happens to you and you cannot afford to take a large hit all at once.

Another is coming April 14

Beginning April 14, retirees who do not have an online “my Social Security” account will need to visit an SSA office in person to verify their identity when applying for benefits or changing the bank account your benefits are deposited into. While you can begin the process over the phone or through the mail, you will need to follow up in person. The agency says it is combating abuse of the system, saying the measures “further safeguard Social Security records and benefits against fraudulent activity.”

While this may not be a huge deal for some, as Kathleen Romig, Center on Budget and Policy Priorities director of Social Security and disability policy, said: “Eliminating most applications by phone will close off an important mode of service for millions of people… More than 4 in 10 retirees apply for their Social Security benefits by phone, as do most spouses who are eligible for benefits.”

Are there more changes in store?

One of President Trump’s bolder campaign proposals is ending taxes on Social Security benefits. He’s reiterated the idea since his inauguration. While the idea is appealing to many seniors and would give retirees more spending power in the short term, the move could be disastrous for the program.

Social Security is already in financial trouble. It’s been running a deficit for years, and projections from the Congressional Budget Office are indicating that the program will become insolvent in under a decade. When that time comes, the program would only be able to pay out what it collects each year in payroll taxes. That’s likely to mean benefits will be cut by 23%. Trump’s proposed Social Security tax cut reduces the program’s income and accelerates this timeline.

This isn’t a foregone conclusion; there’s time for Congress to act. However, solving the issue isn’t easy and will require an enormous effort on the part of American legislators. Eliminating taxes on Social Security benefits will only shorten the window of opportunity Congress has to avoid insolvency.

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