What Beneficiaries Need to Know About the Upcoming Change

Physical Social Security checks will no longer be issued starting Sept. 30, and it could cause issues for some beneficiaries.

The move is part of the Social Security Administration’s push to digitize many of its processes, which it says will improve efficiency and security. Of the about 70 million Social Security beneficiaries, “less than 1%,” receive paper checks for their benefits, according to the agency. 

“When you consider how many beneficiaries there are, that’s still a lot of people who are receiving paper checks,” said Shannon Benton, the executive director of the nonpartisan group The Senior Citizens League (TSCL).

The government says the change will help beneficiaries get payments faster and with less hassle, while advocates worry that the digitization of payments may leave some behind.

Why Changes Are Being Made

About 400,000 beneficiaries have received their benefits via a paper check so far this month. 

The SSA said the move to electronic payments will provide beneficiaries with a smoother experience. Electronic Funds Transfers are processed quicker than paper checks, which the agency said will help beneficiaries receive their payments more promptly.

The shift could also save the federal government millions of dollars a year, according to the agency. Issuing a paper check costs about 50 cents, while an electronic transfers cost less than 15 cents.

The agency also said the move to strictly digital payments would enhance security measures, as paper checks are 16 times more likely to be lost or stolen than electronic payments.

What’s At Stake

However, requiring seniors or people with disabilities to make this change could lead to even more security risks, Benton said.

“Online scams often target seniors,” she said. “I worry a lot about the more they are forced to use a computer, the more likely they are to get scammed in some way. I don’t know if they’re going to notice that they received an email from ssa.com versus from ssa.gov,” she said.

Benton said other concerns include beneficiaries lacking access to a computer or the capability to have internet access in the first place.

The agency said it has sent notices to people who still receive paper checks to explain the changes and highlight the benefits of switching to digital payments.

Recent benefit checks have also included an insert detailing the steps beneficiaries need to take to switch to electronic payments, according to the agency.

“Changes are good, but you have to know how these changes are going to impact those who are most vulnerable,” Benton said.