Time is running out for nearly half a million Supplemental Security Income (SSI) and other Social Security beneficiaries. The Social Security Administration (SSA) has issued a warning that payments could be halted in October 2025 unless recipients switch from paper checks to electronic methods by September 30th.
This change, mandated by a presidential order, aims to modernize the payment system and save taxpayers $657 million annually. However, it presents significant challenges for elderly or rural recipients who do not have access to banking services.
Why is the SSA Making This Change?
The shift to electronic payments has been explained by the SSA as a move to eliminate inefficiencies and high processing costs. While most beneficiaries are already using direct deposit or the Direct Express card, roughly 494,000 recipients from various SSA programs still depend on mailed checks, particularly elderly individuals in rural areas.
These individuals now need to open a bank account or enroll in the fee-free Direct Express® program.
Though there are limited exceptions, the full details remain unclear. Failure to make the necessary change could result in delayed or suspended payments, which could affect vital needs like rent and medications. The SSA urges beneficiaries to act promptly to avoid interruption of their payments.
What Beneficiaries Need to Do
The deadline to switch is fast approaching, so it’s important to take action now. Beneficiaries should:
Contact their local SSA office immediately via phone at 1-800-772-1213 or visit ssa.gov for more information.
Choose an electronic delivery method by either setting up direct deposit or requesting a Direct Express® card.
Seek assistance if needed. Community centers and nonprofit organizations, such as Meals on Wheels, can help with the transition process.
What’s at Stake: The Importance of SSI Benefits
SSI provides essential financial support to some of the most vulnerable Americans, including those who are 65 or older, blind, disabled, or have extremely limited income and resources. Eligibility also requires individuals to have assets of $2,000 or less for individuals, or $3,000 or less for couples.
SSI payments are capped at $967 per month for individuals and $1,450 for couples. Some recipients may also qualify for an additional $484 per month if they live with and care for a beneficiary.
These figures include a 2.5% cost-of-living adjustment (COLA) applied in January 2025, with early projections suggesting a similar increase for 2026.
It’s important to note that earnings above a certain threshold may reduce SSI benefits. For every $2 earned over $85 per month, $1 is deducted from the payments. Additionally, non-work income, such as pensions, can also lower SSI payouts.
“Countable resources” are defined as anything of value, such as savings, stocks, or secondary properties, excluding a primary home and one vehicle. Furthermore, SSI recipients must reside in the U.S. and limit international travel to no more than 30 days.
The deadline to transition from paper checks to electronic payments is rapidly approaching. SSI and Social Security beneficiaries must act now to ensure they do not risk losing access to their critical payments after September 30, 2025.
By choosing electronic delivery options, such as direct deposit or the Direct Express® card, beneficiaries can continue to receive their payments on time and without disruption. The SSA encourages beneficiaries to reach out for help if needed and avoid waiting until the last minute to make the necessary changes.
