The Social Security Administration will soon stop sending paper checks. If you still receive your benefits by mail, you need to enroll in electronic payments such as direct deposit or a prepaid debit card right away.
According to an article by the National Council on Aging, the switch is due to an Executive Order designed to combat check fraud, ensure timely payments, and save taxpayers money. It was prompted by an increase in fraud, theft, and other problems involving paper checks.
The executive order states, “…Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT).”
The Social Security Administration expects to completely switch over to electronic payments by the end of the year. So, if you are still receiving your benefits as a paper check, you need to enroll in electronic payment as soon as possible.
To enroll in direct deposit, you need to log in to your personal my Social Security account and update your payment information by providing your bank account information. If you don’t have a traditional bank account to receive Social Security electronic payments, you may be able to receive your monthly benefits on a Direct Express® Debit Mastercard®. Once direct deposit is set up, your monthly benefits will be deposited automatically on your scheduled payment date.
The Social Security Administration notes that if electronic payments would create a hardship for you, you may request and qualify for an electronic payment waiver.
Council of Seniors is Here to Help Older Americans
All of us here at the Council of Seniors want to improve retirees’ financial futures and ensure they receive their full Social Security benefits. We are working with members of Congress to introduce the “Social Security Restitution Act.” It would provide an estimated $970 one-time payment to every retired worker receiving Social Security benefits to help offset years of inadequate cost-of-living adjustments.
Please take a moment and sign our petition today to show your support.