Social Security payments can be distributed in a variety of ways, including via debit card or direct deposit into their bank account.
According to Go Banking Rates, if you are still receiving payments in paper checks, you should switch as soon as possible.
To obtain the Social Security direct deposit payment plan, contact the Social Security Administration. Recipients can access their Social Security account online and initiate or change direct deposit.
Recipients can also contact their bank, credit union, savings and loan association, or savings and loan association. They can also call the Social Security Administration toll-free at 1-800-772-1213 or go to their nearest Social Security field office.
According to the Social Security Administration website, the Direct Express® debit card is the debit card beneficiaries can use to access their benefits.
Recipients will not need a bank account to obtain the aforementioned debit card. The federal benefit is directly deposited into their card account via the card program.
The debit card can be used to make purchases or redeem rewards at thousands of locations.
Meanwhile, in order to sign up for Social Security direct deposit, recipients will need to have a bank account.
Social Security Payments
Because of the rising inflation rate, Social Security benefits could be 8%-9% higher next year.
Furthermore, according to USA Today, retirees could receive an extra $150 per month if Social Security payments receive a 9% cost-of-living adjustment next year.
A cost-of-living adjustment could cost an extra $1,800 per year, according to estimates.
Mary Johnson, a Social Security policy analyst for the nonprofit The Senior Citizens League, predicts that it will be one of the highest COLAs ever paid in the benefits scheme’s history. If inflation continues to rise, the nonprofit group estimates that the adjustment could be as high as 10.1%.
According to the analyst, older adults are the most affected by inflation because they are the ones who do not receive a paycheck, no matter how small. Seniors who do not have a pension or savings are also included.
Johnson stated that each COLA is “meaningful,” with Social Security being one form of inflation-adjusted retirement income.
Concerns About Social Security
Because of the COVID-19 pandemic, Social Security offices were closed, and the agency’s services were mostly provided over the phone and online beginning in March 2020. Customers have had to submit paperwork by mail since then, according to a CNBC News report.
In January, the agency announced the reopening of its field offices, with customers having to wait an average of 40 minutes.
The lengthy wait prompted lawmakers to write to SSA acting commissioner Kilolo Kijakazi to inquire about the agency’s plans to improve customer service.
According to an SSA spokesperson, the public is encouraged to use the SSA website or call them if they are unable to complete the business online. Beneficiaries can also schedule appointments in advance to avoid long lines.