The Social Security rolls are swelling these days as the baby boomer generation reaches the age of eligibility. As more and more people start to receive their Social Security benefits the cost of administering the program is going to continue to rise as well.
Providing income is not the only expense. At the present time 10% of people who are receiving Social Security are getting paper checks in the mail each month. Given the high volume of recipients overall the cost of sending out these checks is considerable.
As a response the Social Security Administration is making a change in 2013. Beginning in March hard copy checks will no longer be mailed. If you are receiving Social Security you must agree to accept a direct deposit into a bank account or credit union account or take your payment via a Direct Express Debit MasterCard.
This action along with the discontinuing of paper checks for some other types of federal benefit recipients is expected to save about $1 billion over 10 years.
It should be noted that the statements that the Social Security Administration used to send out each year are no longer going out in the mail either. These statements are very important because you have to know what you can expect to receive when you are planning for your retirement years.
Though you will not be getting one in the mail, you can access your statement online at any time by visiting the Social Security Administration website. Here is a link to the appropriate page: access your Social Security statement online.
John Kuhn, Estate Planning Attorney
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