Seniors to Receive Social Security Stimulus

Because of the scope of the economic stimulus bill passed last month, it is practically impossible to find a succinct summary of everything offered in the bill. However, it is possible to find out in bits and pieces. One of the more interesting stimulus measures includes payment to those on Social Security right now. If you are receiving Social Security Income or Supplemental Security Income, you will receive $250 without doing anything. There is more information on the official Social Security Administration Web site — including a video.

This is a nice bonus for seniors and others already receiving Social Security. I know my grandparents will be pleased. It is still unkown how the payments will be distributed: Check or additional amount in the regular deposit. Personally, I think a check with an enclosed explanation would be the best way; an extra amount in the regular deposit could cause confusion.

Watching out for scam artists

This recession has spawned a number of scams, and this Social Security stimulus will probably be no exception. There is nothing that recipients need to do in order to receive their stimulus payments, so be wary of anyone telling you that you need to fill out some paperwork. Fine Tuned Finances offers this about one scam possibility:

This benefit from the American Recovery and Reinvestment act will almost certainly attract con-artists that prey upon seniors. The most likely scenario is that a con-artist will send a fraudulent form to a social security recipient and request personal information so that the payment can be processed. If a victim were to fill out one of these fake-forms, the con-artist could use that information to steal the identity of the victim. It would be well worth it to remind any senior adults in your life that they will not need to do anything to receive this benefit and should not fill out any special paperwork to receive it.

The SSA expects that payments will be made during the month of May, but details are not all worked out. Even though the government hopes these will be spent to help the economy, I suspect that most seniors will save the money — or use to help offset rising health care costs. And this is probably wise. When you’re on a fixed income, and when inflation seems likely, your best bet is to set any extra money aside in some sort of an interest bearing account.