A Big Change to Social Security Is Coming This Fall — and It’s Probably for the Best

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The Social Security Administration (SSA) announced a big change to the program starting Sept. 30, 2025 — but don’t worry, it’s not a cut to benefits. Instead, that’s the day that the SSA will stop issuing paper checks. This shift to completely digital payments isn’t meant to inconvenience beneficiaries; rather, it’s a huge cost-saving move on the part of the government.

Regardless of the reasoning behind it, you’ll need to prepare for it. Here’s what you’ll need to know about the historic shift.

What Do Beneficiaries Need To Do?

Although a seismic shift in terms of transitioning from old ways to new, very few beneficiaries will actually be affected by the switch to electronic payments.

According to the SSA, less than 1% of beneficiaries currently receive paper checks, which is a staggeringly small percentage. Nonetheless, with nearly 74 million Americans receiving benefits, that still amounts to almost three-quarters of a million recipients.

To make a smooth transition and ensure they don’t miss out on any payments, those beneficiaries will have to switch to one of two electronic payment methods, per the SSA:

• Enroll in direct deposit: This is probably the easiest and most common method. Much like you would get a direct deposit from your employer into your bank account, you can sign up for direct deposit of your Social Security benefits. 
• Get a Direct Express® Card: If you don’t have or want a bank account for whatever reason, you can receive your benefits via a Direct Express® card. This is a prepaid debit card that the SSA reloads every month. Like any other prepaid card, you can use it to make purchases or pay bills. You can also get cash from an ATM machine using the card.  

Answers to Common Questions

Change can be uncomfortable for many, particularly when it comes to handling money. The SSA understands this and offers these helpful answers to questions beneficiaries may have regarding the change:

‘I Don’t Trust or Use the Internet’

Although the internet can be helpful, if you’re uncomfortable with it, you can still get your payments. As the SSA points out, electronic deposits do not require internet use. If you go the direct deposit route, you can visit your local bank teller to get your money without using the internet. With the Direct Express® card, you can simply use it like a debit or ATM card, no internet necessary.

‘It’s Too Complicated To Set Up’

There are four simple ways you can set up your electronic transfer:

• Call the Social Security Administration at 1-800-772-1213.
• Set it up online at www.ssa.gov.
• Visit your local bank or credit union and provide the necessary account information.
• Enroll the Direct Express® card by calling 1-800-333-1795.

‘I Need Help Managing My Money’

You may want to work with a trusted family member or financial advisor when it comes to managing your money. But the electronic deposit process should make budgeting and planning easier.

With a paper check, you have to wait to receive it in the mail, hoping it is not delayed or lost, and then go visit your bank and make the deposit, in some cases waiting for the check to clear. With electronic deposits, your money comes in on the same day every month, automatically appearing in your account with no hassle. 

What’s the Upside?

According to the SSA, there are four major benefits to using electronic payments:

• Security: Paper checks in the mail are an easy target for thieves and fraudsters. Electronic payments, although theoretically capable of being hacked, are a much harder target for criminals. 
• Reliability: Once you set up your electronic payments, you’ll receive the same amount on the same day every month. You won’t have to worry about delays that can hit the postal system.
• Convenience: It’s hard to argue that electronic deposits are not more convenient than paper ones. Funds automatically appear in your bank account or debit card and don’t require trips to the bank – or even to your mailbox. While convenient for everyone, it’s particularly helpful for those with mobility issues or who live in remote areas, far from any bank or post office.
• Cost savings: In an era when the national debt is spiraling out of control, any cost savings the government can muster should be applauded. In the case of Social Security payments, the cost savings are potentially huge. When the government issues a paper check, it costs about 50 cents. But electronic transfers only cost about 15 cents per transaction, per Newsweek. Between that and other administrative costs, the government stands to save billions of dollars in expenses.

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