Social Security Confirms Checks ‘Going Away’ This Fall

(KMDL-FM) For millions of hard-working Americans, it was the promise that there would be money available for them in their "Golden Years". Decades ago, Social Security was looked upon as "America's Retirement Plan".

I am sure if you asked workers around the Gulf South, be they from a big city such as Houston or New Orleans, or a smaller city such as Lafayette or Beaumont, their feelings on Social Security, you'd probably hear a bit of fear and trepidation in their answers. What once upon a time seemed to be an economic certainty isn't so certain anymore.

READ MORE: Live Comfortably Without Social Security? How Much Would You Need?

READ MORE: Was Your Social Security Account Hacked? How to Find Out For Sure

American workers paid into the plan, whether they wanted to or not, and in exchange were promised that money would be there to take care of their needs when they reached retirement age.

And to add even more confusion to the fire, the Social Security Administration has just announced a major shift in payment policy that will be rolled out to those who receive benefits later this year.

Why Are Social Security Checks Going Away?

For decades, Social Security benefits have been mailed to those who qualify. For many, that check was how they paid their bills and purchased food to feed themselves. Now we have learned that as of September 30th, those paper checks are going away.

Please understand, it's only the paper checks that are going away; your Social Security benefits will remain in place. You just won't receive them in the form of a paper check. Instead, all Social Security benefits will be paid electronically. While this might sound like a huge transactional move, it really isn't.

Social Security says that less than 1% of current beneficiaries receive their stipend via a paper check. Most people already have electronic payments set up through their bank or financial services provider. If you are one of the few who still get a paper check from Social Security, you have a couple of months to choose one of these two options to ensure that your payments won't be interrupted.

How Do I Set Up Electronic Payments For Social Security?

One, you could visit your bank and get direct deposit set up. Your Social Security stipend can be deposited into a checking or savings account of your choice. The other option is to opt for a Direct Express Card. The Direct Express Card is a prepaid debit card designed specifically for federal benefit payments.

If you have an older family member who receives Social Security benefits, you might want to visit with them about these changes and make sure they have made the proper arrangements for when the paper checks stop coming later this year.