A New Social Security Payment Change Will Affect 3.6 Million Beneficiaries This Summer

Over 10% of people aged 65 and up rely on Social Security for more than 90% of their income, according to the Social Security Administration (SSA). Many disabled people of all ages also depend on Social Security Disability Insurance (SSDI) income or Supplemental Security Income (SSI).

While relying too much on Social Security isn't always the best path to lower your financial stress, it's a reality for many. And those who need benefits count on them to be paid on schedule. That's why a change in the payment process could be a major concern, even if it's mostly administrative.

This summer, approximately 3.6 million beneficiaries will face this reality. The method for sending payments is changing, and those affected need to know why and what their obligations are.

Who is affected by Social Security's change?

Social Security's payment processing change affects all beneficiaries who currently receive their benefits via Direct Express®.

Direct Express® is one of the government's preferred payment methods for Social Security benefits. In fact, in September, when the Trump Administration aimed to transition benefits recipients away from paper checks, the Social Security Administration recommended either direct deposit or Direct Express®.

Over 3.6 million people are signed up to receive payments through Direct Express®. This includes people receiving Social Security benefits, veterans' benefits, and certain other government benefits.

What is Direct Express?

Direct Express® is a prepaid debit card. Social Security recipients could sign up to have their benefit payment deposited into it, and the Social Security Administration then deposits the funds directly onto the card. The money is available on the scheduled benefit payment date.

There's no enrollment fee or minimum balance required to have Social Security benefits deposited onto a Direct Express® card. This option is primarily used by people without a bank account to enable them to get quick and easy access to their Social Security income.

What's changing with Social Security payments?

A company called Comerica was initially chosen to administer Direct Express® through a competitive process in 2008. Comerica was chosen again in 2014 and 2019.

However, the era of Comerica serving as the financial agent for Direct Express® is now coming to an end. The U.S. The Department of the Treasury's Bureau of the Fiscal Service has determined that Fifth Third Bank is the new financial agent.

Any new enrollees in the current Direct Express® program will be issued a debit card by Fifth Third Bank beginning in May 2026.

Beneficiaries who are already enrolled will transition to a new card later in 2026 or in early 2027.

What should current Direct Express® enrollees do?

If you are currently enrolled in Direct Express®, you can continue using your existing debit card. Nothing has changed for now, and benefits should continue to be deposited and become available on schedule.

However, you will eventually receive a new card. You should be given advance notice of your account transition, and you should continue using your Comerica-issued card until it expires.

Be sure to watch the mail for notice of the new card's arrival, so you can activate it as soon as it arrives using the Mobile App, by going online, or by calling the number listed on the card.

You should also make sure you keep your contact information up to date, as you'll need to receive communications about the transition and ultimately ensure your new card is mailed to the right place.

How to update your contact information with Social Security

If you need to update your contact information, you can do so online at my Social Security. You may need to create an account if you don't have one already.

You could also update your contact details by scheduling an appointment at a local Social Security office or by calling 800-772-1213. If you are deaf or hard of hearing, call 800-325-0778.

Keeping your information up to date helps ensure you don't miss your new card or any communications from SSA about when the change is happening.

What are your other options?

If you don't want to wait for a change in payment method or are worried about potential problems during the transition, you could avoid the process by using another payment method.

The government is transitioning away from paper checks, so your best bet is to sign up for direct deposit.

To make the switch, visit the Go Direct® website run by the U.S. Treasury, or call the Treasury's Electronic Payment Solution Center at 1-800-333-1795.

You'll need a bank account to receive a direct deposit. If you don't have one already, the FDIC's GetBanked is a good resource to find out how to get one.

Bottom line

If you are one of the 3.6 million people participating in Direct Express®, you need to prepare for the fact that your Social Security payment method is changing.

Although this administrative change shouldn't affect your retirement plan, you'll still need to ensure the Social Security Administration can contact you, and you'll need to watch the mail for your new card to complete the switch.

If you don't want to deal with the hassle, be proactive now and change your payment method to receive direct deposits in a bank account. If you run into any questions, you could always contact the SSA and Direct Express® program for assistance.