America's seniors are becoming poorer at the same time the future of Social Security is at risk. New Census Bureau data released Tuesday shows the share of adults age 65 and older living in poverty under the Supplemental Poverty Measure (SPM) climbed to 15.4 percent in 2025, up from 9.4 percent in 2020. That means more than 10 million older Americans now fall below the SPM poverty threshold, according to AARP Foundation's report of the newly released numbers.
This shift is happening just as Social Security inches closer to its funding shortfall. Automatic benefit reductions could occur within the next decade if lawmakers fail to act. Long gone are the days of 30 stable years, a gold watch, a pension, and health benefits.” The Census Bureau's report reflects how millions of older Americans already rely on Social Security.
While the official U.S. poverty rate declined to 10.2 percent in 2025, the picture for seniors is in stark contrast. Under the Supplemental Poverty Measure, which accounts for taxes, housing costs, and medical expenses, poverty among older Americans has risen sharply since the pandemic era. The 2026 Social Security Trustees Report has predicted that the program's main retirement trust fund will be depleted in 2032.
If Congress does not intervene, that means incoming payroll taxes would only be able to pay about 78 percent of scheduled benefits. For many older Americans, a 22 percent reduction could mean the difference between staying above or falling below the poverty line. Social Security plays a massive role in preventing poverty among older Americans.
According to the Census Bureau, Social Security lifted 28.8 million people out of poverty in 2025. Older Americans are especially reliant on the program. Many retirees receive most of their monthly income from Social Security.
For some lower-income beneficiaries, it makes up nearly all of their retirement income. A 22 percent reduction would affect every beneficiary regardless of income level. Based on recent average retirement benefit levels, that cut would amount to hundreds of dollars per month for many retirees.
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