Social Security Just Found a Way to Save $1.64 Million Annually -- But It Comes With a Tradeoff

Key Points

• The Social Security Administration will end paper check delivery on Sept. 30, 2025.

• This will help the program save money while making payments safer and more efficient.

• If you don't have a bank account, you can request a prepaid debit card for your payments going forward.

• The $23,760 Social Security bonus most retirees completely overlook ›

Social Security has already seen its fair share of shakeups in 2025, and if you're currently receiving checks, you may soon have to brace for another. The government is changing its available payment options at the end of the month to improve efficiency.

The change is also supposed to help the government save more than $1.64 million annually. However, as a result, some seniors could face delays in their benefit payments if they don't act quickly enough to elect another payment method.

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Say goodbye to paper checks

The Social Security Administration has decided to end paper benefit checks for all beneficiaries, including spousal and disability beneficiaries, as of Sept. 30, 2025. The reasons for this are three-fold:

• It's faster: More modern payment methods, like direct deposit, are much quicker and less likely to encounter delays than paper check delivery.
• It's safer: Paper checks are 16 times more likely to be lost or stolen than electronic payments, according to the Social Security Administration.
• It's cheaper: Mailing paper benefit checks costs the government about $0.50 each, according to the Treasury Department, while electronic transfers cost less than $0.15 each.

A $0.35 savings per check may not seem that significant to you, but it adds up over time. As of September 2025, 390,841 beneficiaries receive paper Social Security checks -- about 0.6% of all beneficiaries. Each beneficiary gets 12 checks per year. By forcing each of these individuals to transition to electronic payments, the government will save over $1.64 million annually.

That's a drop in the bucket compared to the $1.48 trillion the program spent in 2024. But it's still a cost savings. The only real downside is that those currently receiving paper checks will have to arrange for a new payment method. But you still have options, even if you don't have a bank account.

Act quickly to avoid benefit delays

Going forward, Social Security beneficiaries can choose between two payment methods: direct deposit or a Direct Express® Card. Direct deposit is your easiest option if you have access to a bank account or are willing to open one. Once you've provided the Social Security Administration with your routing and bank account numbers, it will see to it that the money appears there promptly on your scheduled payment date.

A Direct Express® Card is a prepaid debit card that you can use in stores like you would cash. The Social Security Administration will add your monthly Social Security balance to the card directly, no bank account required.

You may have already received some notices in the mail if you're currently receiving paper Social Security checks, urging you to make your selection before Sept. 30 to ensure your benefits continue to arrive on time. If you don't choose a new payment method by then, you may experience delays.

The fastest way to make changes is to set up a my Social Security account. Here, you can view your benefit details and select a new payment method. If you later want to update your bank account or switch payment methods, you can do this from here as well. You will need to spend a few minutes setting up your account and verifying your identity if you don't already have one, but there's no need to wait on hold or schedule appointments.

If you're not comfortable updating your payment information online, you can call the Social Security Administration or schedule an appointment at your local office. However, this could take longer, so it's best to do this right away.

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