Survey Reveals Baby Boomers Lag Seniors in Direct Deposit Usage
Surprising Findings Underscore Importance of Treasury's New Go
Direct Campaign
WASHINGTON, DC (Dec. 27, 2005) -- 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.
The nationwide survey, sponsored by the U.S. Department of the Treasury
and the Federal Reserve Banks as part of their Go Direct campaign,
provides a surprising twist on commonly held perceptions about these age
groups, especially in light of another finding that showed baby boomers
are 20-25 percent more comfortable with technology than seniors. Go
Direct, a national campaign launched earlier this year, 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 Treasury's Financial Management Service. "Last
year alone, half a million people reported problems receiving checks.
In stark contrast -- and contrary to what 38 percent of those surveyed
believe -- no direct deposit payment has ever been lost or stolen.
"Furthermore, if the trend with pre-retirees continues, the sheer size
of the 77 million baby boomer population -- coupled with impending postage
increases -- will drive up the government's costs to issue paper checks
exponentially. and taxpayers will bear the burden."
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."
For many years, direct deposit has been a priority for the Treasury
and the Federal Reserve Banks. Go Direct champions a long-standing
effort to shift from paper payments to direct deposit. The integrated
campaign relies on trusted sources -- such as financial institutions and
community-based organizations -- to reach seniors, disabled people and
other federal benefit recipients where they live, work and socialize. Go
Direct launched nationwide in September 2005.
Go Direct has established Web sites, www.GoDirect.org (English) and www.DirectoASuCuenta.org (Spanish), 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).
# # #
These results are of a nationally representative telephone survey of
1,400 adults, ages 18 and over, conducted December 3-12, 2005, by KRC
Research. The margin of error for the overall study is +/-- 2.6 percent
at the 95 percent confidence level.
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