Social Security data show that some 486,316 Social Security claimants receive their benefits by way of a monthly paper check.
However, an executive order issued by President Donald Trump will digitize them all by Sept. 30.
The order says paper checks will be discontinued because the ongoing use of paper-based payments imposes unnecessary costs, delays, and the risk of lost payments, theft, and inefficiencies.
EFT channels include direct deposit, prepaid card accounts, and other digital payment options.
"I'm not surprised that this is happening, but I'm surprised that it took this long," CareYaya.org co-founder and CEO Neal K. Shah said of September's digitization deadline. "As someone who works daily with thousands of families navigating aging, I see directly how our analog payment systems create unnecessary barriers between seniors and the benefits they've earned."
As a result, SuperMoney.com certified financial planner Andrew Latham believes success of the digitization will depend on how accessible and understandable it is for the people who need it most.
“SSA should consider early outreach, plain-language instructions, one-on-one help where needed, and real alternatives for those who cannot or will not use digital systems,” Latham told NTD.
The challenge, according to Shah, is the digital divide that exists around retirees.
“There needs to be a partnership with community organizations and elder care providers to offer hands-on digital literacy training,” Shah told NTD. “Second, they need to create simplified interfaces specifically designed for seniors with cognitive challenges.”
U.S. Hispanic Business Council founder and CEO Javier Palomarez hopes the SSA will tackle the various cybersecurity threats that may impact EFT payments.
"The SSA will have to adapt to these threats with new systems, contracts, and precautions," Palomarez told NTD.