Changes are on the way for how many people receive their Social Security benefits. The federal government says in order to save money, it's encouraging people who receive Social Security benefits to change the way their money is received and the clock is ticking to make it happen.
When it comes to receiving what's yours, every dollar and cent counts.
"This is their daily bread," says David DeBiasi with AARP.
DeBiasi is working to alert his members of a major change the federal government wants to implement by March 1st. In an effort to save money, the government wants Social Security recipients to sign up for direct deposit, rather than receiving paper checks in the mail.
According to one report, it costs the government 92 cents more to mail a check than to distribute funds into accounts so the move is expected to save the government 120 million dollars in the first year alone.
The AARP says it isn't for or against the changes. It says there are pro's and con's that may affect many of its members.
"If you live in a remote geographic area where there isn't good internet service, that could be a hardship if you're trying to do online banking with direct deposit….Also if there's any difficulties with just learning something new, because you're older, over age 90, that could be a hardship," DeBiasi said.
On the other hand, he says some of his members already receive direct deposit due to immediate convenience. Either way, the government is making a major push to move all recipients into this new direction.
"It wasn't meant to be peoples sole source of income, but as pensions have been reduced, as investments have been reduced, there are more and more people living on Social Security as their sole source of income and it's very important they have access to their checks," DeBiasi said.
Because when you need it most, money matters.
The government will allow some exceptions to the rule. If you are 90 or older, you can get an automatic waiver to receive paper checks, and if you live in a remote area that doesn't support electronic deposits, you can also request a waiver.
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