Elder Law FAX -- January 2, 2006

Use Direct Deposit to Keep Control of Your Money, Safeguard Social Security Benefits
A new survey has revealed a troubling difference between today's seniors and the next generation of retirees -- one that could have significant cost and security implications for Americans. Among those ages 65 and older, the survey found that 72 percent use direct deposit. In contrast, only 59 percent of Americans ages 45-64 -- the bulk of the baby boomer generation - said they use it.

Go Direct, a national campaign launched in September 2005, aims to inform more Americans about the security, ease, and convenience of using direct deposit for Social Security and other federal benefits, and to encourage them to sign up.

"There is no safer way to receive Social Security than direct deposit," said Dick Gregg, commissioner of the U. S. Treasury's Financial Management Service. No direct deposit payment has ever been lost or stolen, while "last year alone," Gregg said, "half a million people reported problems receiving checks."

The government's cost of issuing paper checks is far higher than the cost of direct deposit. "Taxpayers will bear the burden," Gregg said.

Gaining Control
Why the resistance to direct deposit? According to the survey, among the 40 percent of Americans who do not currently use direct deposit, there were three leading reasons -- 21 percent said they like to go to a financial institution to deposit their check; 19 percent said they don't trust direct deposit; and 18 percent said they like receiving a paper check.

The survey also revealed that Americans' leading financial issue for the new year, behind reducing debt, is gaining more control over their money. For many, direct deposit is simply the best way to receive their money, including Social Security and other federal benefits. Direct deposit is safer, easier, and gives people more financial control. Nearly 95 percent of those surveyed who currently use direct deposit have had a positive experience with it.

"Direct deposit gives you far greater control over your money and time than waiting for a paper check to arrive each month," Gregg said. "Come payment day, you know your money will be safely in your account -- on-time, every time."

Go Direct has a Web site, http://www.GoDirect.org, where people can sign up online for direct deposit of federal benefits or get an enrollment form to mail in. The campaign also has toll-free numbers to help people sign up for direct deposit right over the telephone: (800) 333-1795 (English) and (800) 333-1792 (Spanish).

Elder Law FAX Issues Index

Elder Law FAX is published every other Monday by the Elder Law Practice of Timothy L. Takacs, with offices in Hendersonville and Cookeville, Tennessee. Visit us on the Web at http://www.tn-elderlaw.com. Copyright 2006 by the Elder Law Practice of Timothy L. Takacs. Would you like Elder Law FAX e-mailed to you free? To subscribe, please use the Elder Law FAX Subscription Form at http://www.tn-elderlaw.com/faxform.html.