The Social Security Administration (SSA) is implementing a significant change to its payment system. Paper checks for federal benefits will be eliminated starting September 30, 2025. This measure affects all payments, including Social Security and SSI. The mandatory transition to electronic methods is permanent.
Approximately 456,000 beneficiaries still receive their monthly payments by physical check. This figure represents about 0.7% of the total 68 million people receiving Social Security benefits. Estimates vary slightly between sources, but all agree on the small magnitude. The change will impact a specific segment of the population.
Vulnerable groups could see their Social Security payments interrupted
The affected groups often include older adults, people living in rural areas, individuals with disabilities, and those without access to bank accounts. It also impacts beneficiaries with limited digital capabilities. These characteristics define the group that still relies on physical means to receive their funds.
The White House justifies the decision by citing the increase in mail theft and check fraud during the COVID-19 pandemic. They noted that Treasury Department checks pose a significantly higher risk. Specifically, they are “16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer.”
The legal basis for this change is a federal executive order issued on March 25. Titled “Modernizing Payments to and from U.S. Bank Accounts,” it was signed during President Donald Trump’s administration. It established the framework for phasing out paper payments. The final deadline was set for September 2025.
In addition to Social Security payments, this order affects other benefits such as Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI), which could be suspended at the same time as payments to federal providers and tax refunds from the Internal Revenue Service (IRS).
All of these federal disbursements must be distributed exclusively electronically after the deadline. The change is comprehensive for government agencies, beyond the scope of the SSA.
Beneficiaries must choose one of the authorized digital methods to receive their funds. Valid options include direct deposit into a bank or credit union account. Government-issued prepaid debit cards and the use of digital wallets are also accepted. Real-time payment systems are another viable alternative.
How to prevent your Social Security benefits to be interrupted
To avoid payment interruptions, beneficiaries currently receiving paper checks must switch to an electronic payment method before September 30, 2025. They can enroll in direct deposit (bank or credit union account), request a prepaid debit card (called Direct Express), or use an approved digital payment service.
Those without banking access or with extreme hardship may apply for an exemption by contacting the Social Security Administration (SSA) or Treasury Department to request alternative arrangements. Failure to update payment methods by the deadline may result in delayed or suspended benefits.
Maximum Social Security payments in 2025
Let’s do a quick review of Social Security payments for retirees and surviving family members of deceased beneficiaries.
For early retirement (from age 62), the maximum benefit reaches $2,831 per month, although it is reduced due to the early retirement age. Those who wait until full retirement age (67) can receive up to $4,018 per month. For late retirement (at age 70), the amount increases to $5,108 per month thanks to additional credits.
For disability (SSDI), the maximum amounts are $1,620/month for blind individuals and $1,950 for those with other conditions. Supplemental Security Income (SSI) pays up to $967 for individuals and $1,450 for couples. Surviving spouses receive between 71% and 100% of the deceased worker’s original benefit, depending on their age.