Social Security Transition To Electronic Payments: Here's What You Need To Do Before The September 30 Deadline

(MENAFN- Live Mint) A big shift is coming for Social Security . Starting September 30, paper checks will largely disappear, with the government moving most beneficiaries to electronic payments.

The Social Security Administration (SSA ) confirmed that federal benefit payments will now be delivered by direct deposit or through a prepaid debit card. Paper checks, still used by millions, are being phased out, with only limited exemptions allowed.

“Electronic payments offer faster access to funds, more security, and greater convenience,” SSA communications officer Nick Perrine said in a statement. Direct deposits or prepaid debit cards mean no waiting on the mail or trips to the bank.

How payments will work

Beneficiaries have two choices: deposit funds directly into a checking or savings account, or use the Direct Express card, a prepaid debit card aimed at people without bank accounts. New applicants will no longer see paper checks as an option. Anyone requesting an exemption will need to file a waiver with the US Treasury.

Ways to enroll

Direct Deposit: If you receive Social Security benefits, you can set up or manage direct deposit through your personal my Social Security account. If you get Supplemental Security Income (SSI) or are an international beneficiary, call 1-800-772-1213 for assistance.

Social Security staff are available to guide you through the process and answer questions. To avoid delays and keep your benefits coming without interruption, make sure you switch to electronic payments before the September 30 deadline.

Jean Chatzky weighs in

Beyond the payment changes, when should people claim Social Security? Jean Chatzky, bestselling author and longtime financial journalist, has a simple but often overlooked answer: later is better.

For single people expecting to live a long life, Chatzky recommends waiting until 70 to claim, which boosts monthly benefits. For married couples, she suggests the higher earner delay filing so the couple can maximize income if one spouse lives into an older age.

She also points out that many Americans keep working while collecting benefits. Some out of financial need, others for social connection. Either way, planning for at least 20 years of retirement is a must.

Also read: DOGE whistleblower sounds alarm over Social Security data of 300 million Americans at risk of leak or hack

Debt makes it harder

In her book Money Rules, Chatzky stresses that debt is the biggest roadblock to retirement savings, per the Business Insider. With average US households carrying more than $15,000 in credit card debt, she warns that interest alone can eat up funds that should go toward savings or investments.

“Make your lifestyle decisions based on what you can afford, not what your peers are buying,” she wrote. As Social Security enters a new era of electronic payments, Chatzky's advice is to claim carefully, save aggressively, and keep debt under control.

FAQsWhen does the Social Security change take effect?

The shift to electronic payments begins on September 30, 2025.

Can I still get paper checks?

Only in rare cases. A waiver must be filed with the US Treasury for exemptions.

What are the new payment options?

Direct deposit into a bank account or the Direct Express prepaid debit card.

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