MW Social Security stopped a man's benefits because he was presumed dead. Could that happen to me?

By Alessandra Malito

'Someone suggested using a separate bank for direct deposits of Social Security payments'

Dear Help Me Retire,

I read an article about DOGE mistakenly thinking someone was dead, which prompted stopping Social Security and ordering the bank to return the money collected since he had died, which the bank did.

Someone suggested using a separate bank for direct deposits of Social Security payments. This would, of course, cause extra work for me to move that money to the bank I use for expenses.

I'm looking for thoughts if this seems necessary and worth the effort.

Scared of SSA

Related: Should I take money from my Roth IRA or leave it to my heirs?

Dear Scared,

It's always good to be proactive with your finances, especially when it comes to benefits you're owed.

The Department of Government Efficiency has been very active in its efforts to rid the agency of "fraud, waste and abuse" - some say a little too active, given the agency is reducing its workforce and moving some of its services to online and in-person only - but these sorts of mistakes could have happened even before, to be honest. The Social Security Administration, or SSA, is pretty efficient as it is, but there have always been mistakes made, including overpayments and underpayments, or not having the correct personal information or work history of beneficiaries.

Do you have questions about retirement, Social Security, where to live or how to afford it at all? We want to hear from you. Join the conversation in our Facebook community: Retire Better with MarketWatch.

Still, dead beneficiaries receiving money from the SSA has been a hot topic lately. In February, Elon Musk, the Tesla $(TSLA)$ and SpaceX chief executive, X owner, and presidential adviser, said on X that they had found thousands of people in their 100s, 200s and even 300s were still receiving benefits. President Trump echoed those remarks during his first address to Congress. But experts familiar with the SSA and its systems have contested those comments, saying the technology the SSA uses is antiquated, and the file the two are referring to is used only to record all beneficiaries' names and Social Security numbers - not the benefits they may or may not be getting.

Before we get to banking matters, I would be remiss not to mention "my Social Security," an online portal on the SSA's website that allows you to check your personal data, including your name and address, work and earnings history and what you can expect from benefits (or what they are, if you're already claiming). You can also view or change your direct-deposit information, which will require identity verification, something the SSA has been focused on lately.

Clawbacks are usually the result of the SSA overpaying an individual, and the situation can be nightmarish. The rule is now that claimants must give 100% of their checks until the amount is recovered. In those instances, when an individual may not be able to afford to give all their benefits back each check at a time, he or she can ask for a waiver, reconsideration, or to pay a lower amount at a time. Read more on that here.

As for your banking, it is really a personal matter as to how you receive or split your direct deposit. Some people choose to get their income in one bank account that pays out all of their bills, while others may prefer splitting their incomes between accounts if they have specific strategies (ie. one account is used to pay all the bills, and another is rarely touched so it can accrue hearty savings).

Believe it or not, the SSA has an entire webpage dedicated to being misidentified as deceased. "If you suspect that you have been incorrectly listed as deceased on your Social Security record, please visit your local Social Security office as soon as possible," it said. You'll have to bring one form of identification, such as a passport, driver's license or military record. They must be original documents or copies certified by the agency that issued them, the SSA said.

I know there's a lot happening at the Social Security Administration right now, but you being marked as dead is unlikely. Of course, anything is possible, but that's why you can be proactive - as you are. The best move you can make right now is being familiar with your Social Security benefits and staying on top of your records with the agency, especially through the account on their website.

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Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

-Alessandra Malito

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March 25, 2025 13:46 ET (17:46 GMT)

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