The check will no longer be in the mail. Social Security will only be paying benefits electronically.
The Social Security Administration will no longer be sending checks as an effort to modernize the system, CNN reported.
Only about half a million people get their Social Security payment by mailed check or about .8% of recipients.
MoneyWise noted that while the overall number is small, most of those who still get paper checks “are older, live in rural areas or don’t have a bank account.”
Most people who have applied for Social Security since 2013 have been required to receive their funds electronically, MoneyWise reported.
The agency said that the new payout program will begin Sept. 30.
Not only will people get their money faster, but it will also be cheaper for the government to make the payments.
A paper check costs about 50 cents to issue, while an electronic payment, or Electronic Fund Transfer, costs less than 15 cents.
“This shift could save the federal government millions of dollars annually.”
It is also more secure according to the SSA, as the agency said that checks are 16 times more likely to be lost or stolen compared to electronic payments.
People who get paper checks should have been alerted to the change before the deadline, the administration said.
If checks are no longer being sent, how will beneficiaries get their payments?
The SSA said they will have to enroll in direct deposit or opt for the Direct Express card, which is a prepaid debit card for federal benefits.
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