Paper Social Security checks will soon be a thing of the past. Starting September 30 the Social Security Administration will transition all remaining paper check recipients to electronic payments, affecting an estimated 520,000 Americans—many of them older adults.
Why the change?
The SSA says the switch is part of an effort to modernize the system, improve efficiency, and reduce fraud. According to the agency, paper checks are 16 times more likely to be lost or stolen than electronic payments.
Electronic transactions also save the government money. The U.S. Department of the Treasury estimates that electronic payments cost about 35 cents less per transaction, potentially saving millions annually.
“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 statement.
What are your options?
If you currently receive a paper Social Security check, you will need to choose one of two payment options:
- Direct deposit into a checking or savings account
- A Direct Express® prepaid debit card, for those without a bank account
The SSA has begun notifying those affected via mail and plans to include instructions with every remaining paper check issued before the deadline.
Who will be affected?
While more than 99% of Social Security beneficiaries already receive payments electronically, about 0.7%—or roughly 520,000 people—still receive checks by mail. Many in this group include:
- Older adults with limited internet access
- People without a checking or savings account
- Low-income households
- Individuals with disabilities
According to the Federal Reserve, about 6% of U.S. adults are unbanked, with the highest rates among those earning less than $25,000 per year.
Concerns for vulnerable groups
While many experts applaud the change, some warn that it could present serious challenges for the most vulnerable beneficiaries.
“It is concerning how it may affect older people without bank accounts or internet access,” said Shannon Benton, executive director of the Senior Citizens League. “The transition should include a clear and gradual rollout to make sure no one is left behind.”
How to switch to electronic payments
Recipients can switch to electronic payments in several ways:
- Log into your my Social Security account at ssa.gov
- Call the SSA’s payment support line Monday through Friday, 7:30 a.m. to 4 p.m. ET
- Enroll in Direct Express if you’re unbanked
The SSA recommends making the switch as soon as possible to avoid delays or interruptions after September 30.
What happens if you don’t switch?
If beneficiaries don’t select an option by the deadline, the SSA may automatically enroll them in the Direct Express program to prevent any disruption in benefits.
What’s next?
This is one of several recent changes to Social Security benefits. In April, the SSA also updated its policy for recovering overpayments, now withholding up to 50% of monthly benefits instead of the full amount, in response to prior criticism over aggressive collection methods.
With more changes likely in the pipeline, experts say it’s critical for all Social Security recipients to stay informed and updated through official SSA channels.