Senior Poverty Rate Just Went Up as They Fear Possible Social Security Cuts
New Census Bureau data show the share of adults age 65 and older living in poverty climbed to 15.4 percent in 2025.
The poverty rate among seniors in America has increased to 15.4% in 2025, up from 9.4% in 2020, according to data released by the Census Bureau. This trend is occurring as Social Security approaches a funding shortfall, potentially leading to automatic benefit reductions within the next decade if lawmakers do not act. Drew Powers, founder of Powers Financial Group, described the situation as a "retirement crisis" in the country, stating that today's retirees do not experience the same stability as previous generations.
The Supplemental Poverty Measure, which considers taxes, housing costs, and medical expenses, shows that poverty among older Americans has risen sharply since the pandemic. The 2026 Social Security Trustees Report predicts that the program's main retirement trust fund will be exhausted by 2032, resulting in benefits being paid at only 78% of the scheduled rate.
This could mean a 22% reduction in benefits for many older Americans, potentially pushing them into poverty. Social Security has lifted 28.8 million people out of poverty in 2025, but many seniors are struggling to cover rising costs for housing and medical care. The AARP's Economic Security Monitor found that 86% of low-income adults aged 50 and older are concerned about affordability, and a third cannot cover an emergency expense greater than $100 from savings.
Experts warn that automatic benefit cuts could significantly increase senior poverty. With the trust fund depletion projected to occur in 2032, Congress faces increasing pressure to address Social Security's finances to prevent a worsening retirement crisis.
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