Were you aware that Social Security is fully transitioning to Electronic Payments? The Social Security Administration is quietly removing one of its payment options in response to an executive order passed last fall.
As of June 2026, 99.6% of all claimants receive their checks this way, but more than 283,000 still receive physical checks by mail. It’s important to get the word out to them about the change so they may continue to receive benefits.
SSA has information to assist those receiving paper checks in making the switch to electronic transfers. Here is the information I found on their site.
If you’re still receiving payments by paper check, we encourage you to switch to electronic payments as soon as possible. Paper checks are 16 times more likely to be lost, stolen, altered, or returned undeliverable than electronic payments. Switching now ensures you receive your Social Security or Supplemental Security Income quickly and securely.
Monstera Production @ Pexels
Follow These Steps to Make the Switch:
- Create or sign in to your personal my Social Security account.
- Add your bank account information to receive your payment as a direct deposit. **Ensure you have your bank’s routing and account numbers handy if you plan to enroll in direct deposit.
- You can also ask your financial institution to send your direct deposit information to Social Security electronically.
No bank account? You can still receive electronic payments deposited on a prepaid debit card by enrolling in the Direct Express® program. Learn more at GoDirect.gov or call 1-800-967-6857. This gives you a prepaid debit card that the U.S. Treasury will load your Social Security payments onto each month.
Direct Express® is a prepaid debit card. Social Security recipients could sign up to have their benefit payment deposited into it, and the Social Security Administration then deposits the funds directly onto the card. The money is available on the scheduled benefit payment date.
There’s no enrollment fee or minimum balance required to have Social Security benefits deposited onto a Direct Express® card. This option is primarily used by people without a bank account to enable them to get quick and easy access to their Social Security income.
Any new enrollees in the current Direct Express® program will be issued a debit card by Fifth Third Bank beginning in May 2026. Comerica had administered the program in the past. Beneficiaries who are already enrolled will transition to a new card by Fifth Third Bank later in 2026 or in early 2027.
Beneficiaries who are already enrolled will transition to a new card later in 2026 or in early 2027.
Why Electronic Payments? Electronic payments offer several important benefits over traditional paper checks:
- Speed and Efficiency: Electronic funds transfers (EFTs) are processed faster, ensuring you receive your payments on time every month.
- Cost Savings: The Department of the Treasury reports that the average cost to print a check has increased to $3.07 per check, which is approximately 20 times more expensive than automated payments. This shift could save the federal government millions annually.
- Enhanced Security: Electronic payments provide a safer, more secure way to receive benefits, significantly reducing the risk of loss, theft, or fraud.
We are committed to making this transition as seamless as possible for all beneficiaries, including seniors, individuals with disabilities, and those without traditional banking access. **Ask about obtaining a waiver if you fall into any of the above categories.
We (SSA) also recognize that some beneficiaries may not be able to make this transition. If you need an exception due to challenges, such as mental health concerns or living in a remote location without access to financial institutions, you can request a waiver through the U.S. Treasury.
Engin Akyurt @ Pexels
Other Social Security News
I was asked about other Social Security news after last week’s blog post. Insolvency of funds to pay Social Security has been well-reported. First, a little history!
The Social Security Trust Fund consists of two main funds: the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund, which provide benefits to retirees and disabled workers, respectively. The Social Security Trust Funds are the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund. The OASI Trust Fund began in 1937; the DI Trust Fund in 1957. These trust funds are managed by the Department of the Treasury.
These funds are primarily financed through payroll taxes collected from current workers, and while they have accumulated reserves, they are projected to face financial challenges in the coming years, with the OASI Trust Fund expected to be depleted by 2032.
According to the Tax Policy Center, payroll taxes generate more revenue than is needed to pay Social Security benefits, and the surplus is invested in special U.S. Treasury securities. Federal law prohibits the use of these funds to pay for anything other than Social Security, but the government can and does borrow from the funds. However, the Treasury is required to repay all loans, just as it does with any other bondholder.
Causes of Insolvency
- Aging Population: More Americans are retiring and collecting benefits.
- Decreased Contributions: Fewer workers are contributing through payroll taxes, leading to a funding shortfall.
- Wage Cap: In 2026, the maximum amount of earnings subject to Social Security tax is $184,500. People who earn more than $184,000 per year stop paying Social Security taxes, earning $184,500 during the year.
- Stalled legislative action
Impact of Insolvency
If the Social Security Trust Fund becomes insolvent, beneficiaries may experience a 24% reduction in their monthly benefits. This reduction could lead to financial hardship for millions of seniors and disabled Americans who rely on these payments.
It’s difficult for individuals and families to plan with this level of uncertainty. As a layperson, it’s hard for me to understand how and why House Leader Johnson is calling Social Security an “entitlement program” when we all pay Social Security taxes as we work. It’s time for Congress to step up and put forward proposals to address the insolvency now.
AARP sent out an email about some bipartisan traction to address Social Security insolvency. If you’d like to add your name to their petition, Go Here
Go Enjoy …
It’s Father’s Day weekend! Instead of keeping up with outside variables, go enjoy time celebrating people who matter to you. Know that I’m here when you’d like to confer about variables impacting your planning. Book a Time with Lynn for a complimentary 30-minute Zoom with me. OR, send me a note via Email.
Learn more about my work @ The Living Planner. For pre-planners who would like information about overall planning, my book can help you prepare. The 2026 edition of Living Planner What to Prepare Now While You Are Living © can be purchased HERE.
Quote of the week: “Isn’t it funny how day by day nothing changes, but when you look back, everything is different.” – CS Lewis
Stay sharp, everyone! Lynn
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