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Yahoo
19-07-2025
- Business
- Yahoo
Social Security checks go paperless this fall, impacting half a million seniors
For roughly half a million people who still collect their Social Security check from their mailboxes every month, those days are ending. Starting Sept. 30, the Social Security Administration (SSA) will no longer issue paper checks for benefit payments. This transition to electronic payments was mandated by President Trump in March. Social Security payments for the more than 73 million Americans receiving benefits, including retired workers, disabled workers, survivors of deceased workers, and those receiving Supplemental Security Income, are mostly made electronically these days. Mostly, but not entirely. Less than 1% of total recipients, or about 520,000 people, don't get their check direct deposited into their bank account or prepaid debit card. Social Security is 'proactively contacting those beneficiaries to alert them about the change,' an agency spokesperson told Yahoo Finance. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy People who receive paper checks have two options for receiving their Social Security payments electronically. They can enroll in direct deposit with their financial institution that allows monthly payments to be deposited into their checking or savings account. For people without a bank account, there's a prepaid debit card, called Direct Express. There are good and bad sides to this mandate, experts say. 'In general, it's a good thing in that it ensures benefits will flow in the case of natural disasters that can interrupt postal delivery,' said Mark Miller, an author and retirement expert. Shannon Benton, executive director of the Senior Citizens League, added that the transition to electronic Social Security payments 'improves security and reduces fraud.' The downsides of the change may be felt by the most vulnerable recipients. 'It is concerning how it may affect vulnerable seniors, especially those without bank accounts or internet access,' Benton said. 'The rollout of this initiative should be a gradual phase-in period with clear communication to ensure no one is left behind. The transition to electronic Social Security payments could pose significant challenges for unbanked individuals, those without internet access, or those who are not computer literate.' Six percent of Americans are "unbanked"—they nor their spouse or partner had a checking, savings, or money market account, according to The Federal Reserve's most recent analysis. These rates are significant among low-income adults. Roughly a quarter of adults with income below $25,000 were unbanked compared with 1 percent of adults with income of $100,000 or more. Unbanked rates were also higher among younger adults, Black and Hispanic adults, and adults with a disability. Read more: When will I get my social security check? This year's payment schedule. The agency's guidance for those still receiving paper checks is to update payment information by logging on to their My Social Security account online. But what if you can't do that? A process exists today for beneficiaries who are unbanked and cannot use the Direct Express card to continue receiving paper checks, said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. They must be granted a waiver by the Treasury Department, which grants them in cases of hardship or geographic limitations. Following the change in September, the Treasury Department will continue making exceptions in certain circumstances. To qualify for a waiver, a beneficiary must: have a mental impairment that makes electronic payments a hardship; live in a remote area that lacks the infrastructure to support electronic financial transactions, or be age 90 or older To request a waiver application or inquire about an existing waiver, individuals can contact the Electronic Payment Solution Center's waiver line at 855-290-1545. The agency also has staff on hand to help beneficiaries choose an electronic payment option, but experts are concerned about what will happen to them if they cannot make the transition. 'There is the prospect of delays in payments for these individuals in the fall, for these thousands of seniors who will need to go to a field office to continue receiving benefits,' Richtman that the Trump administration has made deep staff cuts at the agency, that could be a slog. The current average wait time for an appointment is 35 days. Appointments are set up by calling 800-772-1213. The Social Security Administration has been trying to shift to an all-electronic payment system for more than a dozen years, Miller said. This time looks like it's for real. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter
Yahoo
19-07-2025
- Business
- Yahoo
Social Security checks go paperless this fall, impacting half a million seniors
For roughly half a million people who still collect their Social Security check from their mailboxes every month, those days are ending. Starting Sept. 30, the Social Security Administration (SSA) will no longer issue paper checks for benefit payments. This transition to electronic payments was mandated by President Trump in March. Social Security payments for the more than 73 million Americans receiving benefits, including retired workers, disabled workers, survivors of deceased workers, and those receiving Supplemental Security Income, are mostly made electronically these days. Mostly, but not entirely. Less than 1% of total recipients, or about 520,000 people, don't get their check direct deposited into their bank account or prepaid debit card. Social Security is 'proactively contacting those beneficiaries to alert them about the change,' an agency spokesperson told Yahoo Finance. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy People who receive paper checks have two options for receiving their Social Security payments electronically. They can enroll in direct deposit with their financial institution that allows monthly payments to be deposited into their checking or savings account. For people without a bank account, there's a prepaid debit card, called Direct Express. There are good and bad sides to this mandate, experts say. 'In general, it's a good thing in that it ensures benefits will flow in the case of natural disasters that can interrupt postal delivery,' said Mark Miller, an author and retirement expert. Shannon Benton, executive director of the Senior Citizens League, added that the transition to electronic Social Security payments 'improves security and reduces fraud.' The downsides of the change may be felt by the most vulnerable recipients. 'It is concerning how it may affect vulnerable seniors, especially those without bank accounts or internet access,' Benton said. 'The rollout of this initiative should be a gradual phase-in period with clear communication to ensure no one is left behind. The transition to electronic Social Security payments could pose significant challenges for unbanked individuals, those without internet access, or those who are not computer literate.' Six percent of Americans are "unbanked"—they nor their spouse or partner had a checking, savings, or money market account, according to The Federal Reserve's most recent analysis. These rates are significant among low-income adults. Roughly a quarter of adults with income below $25,000 were unbanked compared with 1 percent of adults with income of $100,000 or more. Unbanked rates were also higher among younger adults, Black and Hispanic adults, and adults with a disability. Read more: When will I get my social security check? This year's payment schedule. The agency's guidance for those still receiving paper checks is to update payment information by logging on to their My Social Security account online. But what if you can't do that? A process exists today for beneficiaries who are unbanked and cannot use the Direct Express card to continue receiving paper checks, said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. They must be granted a waiver by the Treasury Department, which grants them in cases of hardship or geographic limitations. Following the change in September, the Treasury Department will continue making exceptions in certain circumstances. To qualify for a waiver, a beneficiary must: have a mental impairment that makes electronic payments a hardship; live in a remote area that lacks the infrastructure to support electronic financial transactions, or be age 90 or older To request a waiver application or inquire about an existing waiver, individuals can contact the Electronic Payment Solution Center's waiver line at 855-290-1545. The agency also has staff on hand to help beneficiaries choose an electronic payment option, but experts are concerned about what will happen to them if they cannot make the transition. 'There is the prospect of delays in payments for these individuals in the fall, for these thousands of seniors who will need to go to a field office to continue receiving benefits,' Richtman that the Trump administration has made deep staff cuts at the agency, that could be a slog. The current average wait time for an appointment is 35 days. Appointments are set up by calling 800-772-1213. The Social Security Administration has been trying to shift to an all-electronic payment system for more than a dozen years, Miller said. This time looks like it's for real. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
17-07-2025
- Business
- USA Today
No more paper checks: Social Security moving to 100% electronic payments this fall
The Social Security Administration is transitioning away from paper checks. Later this year, only electronic payments will be used for benefit payments, the agency announced July 14 as part of an effort to modernize its systems and improve service delivery. "By moving to electronic payments exclusively, we aim to improve efficiency, security, and ensure beneficiaries receive their monthly benefits promptly," the agency wrote in a blog post. Less than 1% of beneficiaries have not yet switched to electronic payment methods and still receive paper checks, according to the SSA. The agency is urging those to enroll in either direct deposit or use the Direct Express card before the late September deadline in order to receiving their monthly benefits on time. Those who still receive paper checks will be sent notices to transition as well as instructions on how to transition on all benefit checks, the SSA said. Social Security change coming in July: Agency begins taking back 50% of overpayments When will paper checks no longer be an option? Starting Sept. 30, 2025, the Social Security Administration will stop issuing paper checks for benefit payments. All beneficiaries will be required to switch to electronic payments. Social Security: When do you get your payment for July? See schedule Why the change? The SSA said the switch from paper checks to electronic payments will minimize delays in payments and reduce the risk of fraud. Citing the U.S. Department of the Treasury, the SSA said electronic payments cost roughly 35 cents less than paper checks, essentially saving the federal government millions of dollars annually. The agency added that the transition will provide a safer and more secure method to receive benefits, saying paper checks are 16 times more likely to be either lost or stolen. How to switch to electronic payments Social Security beneficiaries can switch from paper checks to electronic payments online through their personal my Social Security account. The agency has technicians available to support those who need tech support Monday through Friday from 7:30 a.m. until 4 p.m. ET. Another Social Security payment coming in July As soon as late July, some beneficiaries who have been overpaid could have their monthly Social Security benefits cut in half. The SSA announced in April that it would begin withholding 50% of benefit payments to overpaid recipients. That marked a partial backtrack from the month prior, when the agency revealed plans to withhold all of a recipient's benefit until their overpayment was recouped. Previously, the agency had been withholding only 10% of a recipient's benefits to recover overpayments. The SSA had lowered the recovery rate to that level after negative media coverage in 2023 about the agency's collection process, reporting how some had lost their homes after benefits were cut off to make up an overpayment. "Innocent people can be badly hurt," then-Social Security chief Martin O'Malley said, according to the Detroit Free Press, part of the USA TODAY Network. Contributing: Mike Snider, USA TODAY
Newsweek
14-07-2025
- Business
- Newsweek
Social Security Alert Issued About Big Change Coming This Fall
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Social Security Administration (SSA) issued a new alert on Monday about its plan to discontinue issuing paper checks for benefit payments starting September 30. It marks a major shift in how millions of Americans will receive their Social Security, Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) benefits. Why It Matters Transitioning to electronic payments carries significant implications for benefit security and government efficiency. Electronic Funds Transfers (EFTs) process payments more quickly and securely than mailed paper checks, which the SSA found are 16 times more likely to be lost, stolen or tampered with. The cost difference is notable: Issuing a paper check costs about 50 cents compared to less than 15 cents for an EFT. The transition could save the government millions of dollars each year. A Social Security Administration office in Washington, D.C., on March 26, 2025. A Social Security Administration office in Washington, D.C., on March 26, 2025. SAUL LOEB/AFP via Getty Images What To Know The shift to digital payments follows federal concerns over fraud and theft involving paper checks, which spiked during the COVID-19 pandemic. An executive order signed by President Donald Trump on March 25 mandated a government-wide move to fully digital payments in response to the risks. Nearly 500,000 Social Security recipients still receive monthly benefits by paper check. The SSA has emphasized that most beneficiaries already use electronic payments, but those who do not must enroll in a digital option—either direct deposit or the Direct Express debit card—to maintain timely benefit delivery after the cutoff date. "There are two key reasons for this change: efficiency and fraud prevention," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "Digital payments streamline the distribution process, cut down on mailing costs, and reduce the potential for delays or errors while by using secure electronic payment methods, the SSA can better ensure that benefits are delivered directly to the intended recipients, reducing the risk of theft or misdirected funds." Beneficiaries who currently receive paper checks are being contacted directly by the SSA and provided guidance on how to switch to electronic payments. The agency is including informational inserts in existing paper checks, running outreach efforts, and making staff available for assistance. Recipients can update payment methods by enrolling in direct deposit with their financial institution or applying for a Direct Express prepaid debit card, which is designed for those without bank accounts. The SSA also advises recipients to remain vigilant against fraud. SSA and Treasury Department officials underscored that neither agency will ever request payment to expedite or set up benefits. Individuals facing hardship or without access to digital payment methods can apply for exemptions, which are reviewed on a case-by-case basis. Newsweek reached out to the SSA for comment via email. What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "This move is not without challenges. Many individuals who still receive checks may lack access to digital tools or may not feel comfortable using them. These are often the same people who may be most vulnerable during the transition." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "This change to Social Security is a logical one. Less than 1 percent of current recipients receive their benefits through a paper check. Direct deposit is less expensive to implement and more efficient in preventing fraud, so this switch should save money of the program while also cracking down on some efforts to illegally use fund distribution through paper checks." What Happens Next The SSA is on track to complete the migration to an all-electronic benefits system by September 30. Beneficiaries are encouraged to keep their contact details up to date at and follow official guidance as the transition progresses. Additional exceptions may be considered for those with extreme barriers to digital access, but the agency's goal remains to modernize payments for improved security and service. "In the long term, the shift to digital payments is expected to enhance security, lower costs and improve overall efficiency across the Social Security system," Thompson said. "But short-term success is ultimately dependent on how well the process fundamentally works without disruption."
Hindustan Times
27-05-2025
- Business
- Hindustan Times
SSI schedule changed for May-June payments in 2025
The Supplemental Security Income (SSI) schedule for June 2025 payments has been slightly changed, because of which the deposit will be arriving on May 30. The two payments the beneficiaries will receive in May are not a result of overpayments on the part of the Social Security Administration (SSA) but due to June 1 being a Sunday. In such cases, deposits are delivered on the nearest business day to prevent beneficiaries from overdrawing their account. Funded by general taxes, the SSI program is meant to help retired, disabled, survivors, or individuals over 65 who have little to no income or resources to live by. This program is notably different from other initiatives of the SSA such as Social Security Disability Insurance. Program rules prohibit dual monthly disbursements which could hamper eligibility for other assistance programs. Since shifts in deposit timings can affect other eligibility thresholds, scheduling changes require careful coordination in the payment calendar. 'No one is losing funds; it's a scheduling change,' said an SSA official in response to concerns that the shift in deposit date might reduce total annual funds received by beneficiaries. Officials clarified that the May 30 payment will serve as the beneficiaries' June benefit. The SSA announced an adjustment in payments for three months i.e. March, June, and November at the start of the year due to calendar clashes. These deposits are due on February 28, May 30, and October 31 respectively. The SSI program places a maximum limit on benefits that can be drawn by individual and spousal beneficiaries. According to the official website, 'The maximum monthly SSI payment for 2025 is $967 for an individual and $1,450 for a couple. Your amount may be lower based on your income, certain family members' income, your living situation, and other factors.' $1 is deducted for every $2 a beneficiary earns from work. Around $1 is also deducted for every $1 of income received through non-work sources such as disability benefits, unemployment payments, or pensions. Income received by a spouse or parent of a child who falls under SSI may impact the amount received. 'If you live in someone else's home and don't pay your fair share of food and shelter costs, your SSI payment may be lowered by up to $342.33,' the website adds. Direct Express cardholders and paper check receivers will get the payment on May 30 itself. Electronic means, however, are considered to be faster and much more secure. The next payment is scheduled for July 1.
