'Go Direct' campaign urges boomers to choose direct deposit

WASHINGTON (1/8/07)�-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 (U.S. Treasury Department Jan. 3).

"Go Direct" is a national campaign with one key goal: Increasing direct deposit use among existing Social Security recipients.

With the anticipated surge in baby boomer retirements, the Treasury Department--one of the partners spearheading Go Direct--just launched a yearlong pledge drive, "Countdown to Retirement," to encourage boomers to choose direct deposit of paychecks now so they'll be more likely to sign up for direct deposit once they start collecting their Social Security benefits in retirement.

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 money. Currently, about 20% of Social Security and Supplemental Security Income checks are issued in paper form (The Wall Street Journal Jan. 3). As 70 million boomers make the 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.