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In an executive order signed on Mar.
If you receive a tax refund orSocial Security paymentby mail, that will end later this year.
According to financial experts, here are seven ways thismajor change to Social Security affects recipients money.
Its something that Andrew Lokenauth, money expert and founder ofBe Fluent in Finance, often sees with clients.
Potential Rise in Elder Abuse
Another major issue Americans are facing is the closure of banks.
Lokenauth pointed out that many of his clients live in areas where bank branches are closing.
Ive unfortunately seen this happen several times.
Extra Fees
While there are some perks of digital payments, theres also drawbacks like more fees.
Unless youre on top of your balance, you might not notice them.
That means you could lose money just trying to dive into the money youre owed.
Over time, those costs stack up and make it harder to budget on a fixed income.
Schmied also stated that if your benefits land in a checking account, you could run into overdraft fees.
Some banks automatically deductcharges or billsbefore you’re able to even use your money, he noted.
Thats how small mistakes turn into bigger financial problems.
Delayed Payments
The tech barriers are real.
Many elderly people have never used a computer and Lokenauth said his clients are really stressed.
Some people need help setting updirect deposit accounts, he stated.
Others are dealing with incorrect account numbers or routing issues.
People who are affected the hardest are the folks who have been receiving paper checks for years.
Change is tough, Lokenauth noted.
Theres almost always a hiccup when setting upnew payment systems, he stated.
Account details get mistyped, names dont match exactly or verification drags out longer than expected.
That holds up payments, sometimes for days or even weeks.
Phone Scams
Scams are becoming more sophisticated and seniors are at risk.
Its a concern that weighs on Lokenauth.
While electronic payments are generally more secure, they create new risks, he explained.
I work with an 85-year-old woman whos never used an ATM and now feels completely lost, Lokenauth shared.
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