Paper Checks Ending as Social Security Nears Insolvency

The Treasury will stop issuing paper checks for tax refunds, Social Security payments and most federal programs on Sept. 30, a change that could harm about 5 million people who still rely on mailed checks, including many seniors, people with disabilities and the unbanked. Social Security faces a looming shortfall: trustees now project trust depletion in 2034, after which benefits could be cut to roughly 81% of scheduled payments unless Congress acts. Full retirement age remains 67 for those born in 1960 or later; claiming at 62 permanently reduces benefits (by up to about 30%), while delaying benefits to age 70 increases monthly payments by roughly 8% per year. Financial advisers recommend personalized claiming strategies that account for health, finances and work plans, and suggest using any extra Social Security payments to bolster emergency savings or diversify investments. Political and administrative uncertainty, and the absence of comprehensive legislative fixes to date, complicate long-term planning for beneficiaries.