- - - Social Security checks go paperless this fall, impacting half a million seniors

Kerry HannonJuly 19, 2025 at 6:45 AM

For roughly half a million people who still collect their Social Security check from their mailboxes every month, those days are ending.

Starting Sept. 30, the Social Security Administration (SSA) will no longer issue paper checks for benefit payments. This transition to electronic payments was mandated by President Trump in March.

Social Security payments for the more than 73 million Americans receiving benefits, including retired workers, disabled workers, survivors of deceased workers, and those receiving Supplemental Security Income, are mostly made electronically these days.

Mostly, but not entirely. Less than 1% of total recipients, or about 520,000 people, don’t get their check direct deposited into their bank account or prepaid debit card. Social Security is “proactively contacting those beneficiaries to alert them about the change,” an agency spokesperson told Yahoo Finance.

People who receive paper checks have two options for receiving their Social Security payments electronically. They can enroll in direct deposit with their financial institution that allows monthly payments to be deposited into their checking or savings account. For people without a bank account, there’s a prepaid debit card, called Direct Express.

There are good and bad sides to this mandate, experts say.

“In general, it's a good thing in that it ensures benefits will flow in the case of natural disasters that can interrupt postal delivery,” said Mark Miller, an author and retirement expert.

Shannon Benton, executive director of the Senior Citizens League, added that the transition to electronic Social Security payments “improves security and reduces fraud.”

The downsides of the change may be felt by the most vulnerable recipients.

“It is concerning how it may affect vulnerable seniors, especially those without bank accounts or internet access,” Benton said. “The rollout of this initiative should be a gradual phase-in period with clear communication to ensure no one is left behind. The transition to electronic Social Security payments could pose significant challenges for unbanked individuals, those without internet access, or those who are not computer literate.”

Six percent of Americans are "unbanked"—they nor their spouse or partner had a checking, savings, or money market account, according to The Federal Reserve's most recent analysis.

These rates are significant among low-income adults. Roughly a quarter of adults with income below $25,000 were unbanked compared with 1 percent of adults with income of $100,000 or more. Unbanked rates were also higher among younger adults, Black and Hispanic adults, and adults with a disability.

Read more: When will I get my social security check? This year's payment schedule.

The agency’s guidance for those still receiving paper checks is to update payment information by logging on to their My Social Security account online.

But what if you can’t do that?

A process exists today for beneficiaries who are unbanked and cannot use the Direct Express card to continue receiving paper checks, said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. They must be granted a waiver by the Treasury Department, which grants them in cases of hardship or geographic limitations.

Following the change in September, the Treasury Department will continue making exceptions in certain circumstances.

To qualify for a waiver, a beneficiary must:

have a mental impairment that makes electronic payments a hardship;

live in a remote area that lacks the infrastructure to support electronic financial transactions, or

be age 90 or older

To request a waiver application or inquire about an existing waiver, individuals can contact the Electronic Payment Solution Center's waiver line at 855-290-1545.

The agency also has staff on hand to help beneficiaries choose an electronic payment option, but experts are concerned about what will happen to them if they cannot make the transition.

“There is the prospect of delays in payments for these individuals in the fall, for these thousands of seniors who will need to go to a field office to continue receiving benefits,” Richtman said.

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Given that the Trump administration has made deep staff cuts at the agency, that could be a slog. The current average wait time for an appointment is 35 days. Appointments are set up by calling 800-772-1213.

The Social Security Administration has been trying to shift to an all-electronic payment system for more than a dozen years, Miller said. This time looks like it’s for real.

Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky.

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Source: “AOL Money”