The poverty rate among Americans aged 65 and older increased for the fifth consecutive year in 2025, reaching 15.4%, according to data from the U.S. Census Bureau. This rate, based on the supplemental poverty measure (SPM), is the highest of any age group and represents a significant rise from 9.4% in 2020. The SPM accounts for non-cash benefits while subtracting necessary expenses such as taxes and medical costs, offering a more comprehensive view of poverty than the official poverty measure.
The overall poverty rate for all Americans using the SPM edged up slightly to 13.1% in 2025 from 13% the previous year. While other age groups experienced fluctuations—including a temporary decline in 2021—the consistent increase in senior poverty stands out. The number of seniors living in poverty now exceeds 10 million.
Claire Casey, president of the AARP Foundation, cited rising prices, a weakening social safety net, and reduced access to quality jobs as contributing factors to the growing economic insecurity among older adults. “Each year since 2020, more and more older adults have fallen into abject poverty,” she said.
Social Security remains a critical support for many seniors, significantly reducing poverty within this group. The Census Bureau reported that Social Security benefits lowered the senior poverty rate by 8.5 percentage points, lifting nearly 29 million people above the poverty line in 2025. More than 70% of those helped were aged 65 and older, underscoring the program’s key role in preventing deeper economic hardship.
However, Social Security faces long-term financial challenges. The Old-Age and Survivors Insurance Trust Fund, which supplements payroll tax revenues to finance retirement benefits, is projected to be depleted by late 2032. Once the trust fund runs dry, monthly benefits would immediately be cut by about 22%, according to the Board of Trustees’ 2026 report.
The expected depletion date was recently moved forward from 2033 due to tax changes included in legislation passed in July 2025. Without Congressional intervention, the program would only be able to pay benefits based on current payroll tax collections, which could reduce average monthly payments by approximately $500.
Tracey Thomas Gronniger, managing director at Justice in Aging, warned that such cuts would disproportionately affect low-income seniors who rely heavily on Social Security as their primary source of income. “Congress has time to act, but if they don’t, many low-income seniors could be pushed into poverty,” she said.
The looming insolvency of Social Security presents a pressing challenge for lawmakers. Analysts emphasized that the senators elected in 2026 will face decisions that determine the program’s future viability. Margaret Spellings, president and CEO of the Bipartisan Policy Center, noted that it is no longer a question of if reform is needed, but whether political leaders have the will to implement it.