Social Security Faces Growing Financial Crisis: Overpayments And Future Benefit Cuts Loom

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Social Security, already under significant financial pressure, has a staggering $23 billion in unrecovered overpayments. 

Between Fiscal Years (FY) 2015 and 2022, the Social Security Administration (SSA) issued nearly $72 billion in improper payments, most of which were overpayments. This comes as the program faces a looming financial crisis, with its trust funds projected to be depleted by 2035, potentially leading to a 25% reduction in benefits for millions of Americans.

While improper payments represent less than 1% of the total benefits paid out during that period, the $23 billion in uncollected overpayments is a major concern for the SSA, according to its Office of the Inspector General (OIG). These overpayments—often the result of errors or beneficiary misreporting—highlight the agency’s struggle to maintain financial accuracy in its payments.

Since 2002, the OIG has flagged improper payments as a “major management challenge” and made dozens of recommendations…

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