Uncle Sam wants some Social Security beneficiaries to give their money back

Washington gives – and sometimes takes the money back when it gives you too much, even when the error isn’t your fault.

Case in point: the federal government is under scrutiny for its efforts to retrieve overpayments it paid out to some Social Security beneficiaries. Recipients are obliged to repay any overpayment, whether the mistake was due to government error or mistakes by the beneficiary, like providing incorrect salary information.

The excess money may be demanded years after it was paid out, and beneficiaries may receive overpayments for years before the error is spotted. That means required repayments can run into the tens of thousands of dollars, according to a recent report from 60 Minutes.

Experts are encouraging Social Security recipients to calculate how much they should be getting in benefits to ensure they’re not being overpaid. And if you receive notice that you have to return overpayment, know that you can file an appeal or request that the SSA not seek to reclaim the funds. 

You can read more about Social Security overpayments from Money reporter Pete Grieve’s story.

— Mary Ellen Cagnassola, Money reporter

Gen Z workers, who range in age from 21 to 26, have lofty ambitions when it comes to retirement. On average, Gen Zers say they want to retire by 61, the earliest retirement expectation of any generation surveyed in Charles Schwab’s October 401(k) participant study.

At the same time, 99% of Gen Zers said they’re facing obstacles to saving for a comfortable retirement. That compares to 88% of millennials, 91% of Gen Xers and 86% of baby boomers.

• Soaring elder care costs are draining older Americans’ retirement savings, forcing many family members to provide care to aging loved ones on their own.
• Retirement account balances dipped slightly in the third quarter of 2023 while withdrawals and loans inched up amid inflation and market volatility.
• Retirees who are drawing down income from their investments may be able to afford to withdraw up to 4% from their portfolios.

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