The Social Security Administration (SSA) is planning to switch to electronic payments for most of its beneficiaries. This change has caused many different reactions, because not everyone is happy with the change, as many are happy with their good-old paper checks.
According to official notices and policies as of today, this is an inaccurate description of what is happening. The SSA will not be removing the check option for all cases. Instead, they will not be using the check option for most people and keeping it only for those who have no other way to get their money. SSA estimates this will affect less than one percent of the people who get benefits.
How many Social Security recipients are reached
In total, about 500,000-680,000 people who get their benefits by check will be impacted. The SSA has started to tell people in this group about this change and is trying to prevent any problems in paying them.
The change will not happen all at once. It will be slow and helped along. Several stories of thousands of people will have their benefits taken away is not true based on the help and rules the SSA and U.S. Department of the Treasury, which pays most federal money, have given.
But, if you don’t properly transition to the electronic payments, your payments could be suspended until you solve the situation.
Ages to claim Social Security: It changes it all
Social Security checks can be paid starting at age 62 but if you get it early, your check will be smaller every month. By 2025, if you claim the most benefits when you turn 62, your check will be $2,831 a month.
That is about a third less than what you get if you wait to get benefits at your full retirement age (FRA). For most people born in 1960 or later, their FRA is 67. The $2,831 is based on working for 35 years making the most that can be taxed, and it is only good if you need the money now, or you think you will not live very long since you will get less money for the rest of your life.
As you get closer to your FRA, your benefits will go up to make up for the time you waited. If you wait until you are 67 in 2025, your benefit will be $4,018 a month. You will not get less because you waited longer, nor will you get penalized for earning more money.
Your retirement check could be different, actually
That is the “normal” amount for a worker with the most work and highest pay. It gives you access to the money, a good payment, and is a good idea for those who want a steady pay and not try to get more.
To switch to electronic payments for your Social Security benefits, you sign up for direct deposit through your bank or credit union by logging into your my Social Security account at ssa.gov, calling the SSA at 1-800-772-1213, or visiting a local SSA office.
If you don’t have a bank account, the Direct Express Debit Mastercard is a solid option—just enroll at godirect.gov or by calling 1-800-333-1795. The SSA’s pushing hard for electronic payments by September 30, 2025, to make things faster and safer, so don’t wait too long to set it up and avoid any hiccups with your benefits.