Seniors may receive $495 check under new proposal

A new proposal suggests that Social Security beneficiaries could receive checks of nearly $500 to offset a lower Cost of Living Adjustment expected for 2026. This comes as the Social Security Administration plans to recover overpayments at a 100% rate. The Senior Citizens League estimates that if the government recovers all overpaid benefits, seniors could receive a $495 dividend check. This proposal aims to help those affected by the anticipated 2.2% COLA increase. The Social Security Administration recently announced a return to full overpayment recovery, reversing a previous policy that limited recoveries to 10% of benefits. This change is expected to increase recoveries by about $7 billion over the next decade.