While there's increasing evidence that baby boomers are becoming more financially savvy, one of four boomers still gets paid with old-fashioned paper checks. Now there's a campaign to change that.
"Go Direct" is a national campaign with one key goal: Increasing direct deposit use among existing Social Security recipients.
The benefits of direct deposit are clear: Not only is it easier for consumers to use than paper checks, according to Treasury officials, it's safer. Paper checks can be stolen and forged and have a higher incidence of fraud.
Direct deposit also saves consumers money. Currently, about 20% of Social Security and Supplemental Security Income checks are issued in paper form, according to The Wall Street Journal. As 70 million boomers transition to retirement, the costs of processing millions of additional checks will surge unless those payments go the route of direct deposit. Each paper check costs the government 80 cents more to process than does an electronic deposit.
It's easy to sign up. Visit GoDirect.org or call 800-333-1795 for free direct deposit of your government check.
Published July 31, 2007