Senior Poverty Rate Just Went Up as They Fear Possible Social Security Cuts
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.
“We have a real retirement crisis in this country,” Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek. “Today’s retiree does not look like previous generations’ retirees. Long gone are the days of 30 stable years, a gold watch, a pension, and health benefits.”
Why It Matters
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.
What to Know
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.
“Retirees today have gone through dramatic boom and bust cycles—dot com, banking crisis, covid—and have had to navigate corporate downsizing as they jumped from employer to employer,” Powers said. “They paid skyrocketing college tuition for their children.”
The new poverty data also suggests that even with Social Security benefits intact, many seniors are struggling to keep up with rising costs for housing and medical care.
“The rise in senior poverty is very troubling, as it reflects several sectors being impacted by inflationary pressures coming together all at once,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “Higher housing, medical expenses, and limited opportunities for older Americans to increase their income are weighing on seniors’ wallets.”
The AARP’s Economic Security Monitor found that 86 percent of low-income adults aged 50 and older say affordability is a top financial concern, while one-third said they could not cover an emergency expense greater than $100 from savings.
“Social Security has become the de facto pension, but it has been unable to keep up with the actual inflation a senior experiences,” Powers said. “All of which is why a looming cut to Social Security could not be coming at a worse time.”
What Could Social Security Cuts Mean?
If automatic benefit cuts were implemented, experts warn they could significantly increase poverty among older Americans.
“Social Security already keeps more older Americans out of poverty than any other federal program, so a significant reduction in benefits after the trust fund reaches its projected 2032 shortfall could turn today’s affordability problem into a much larger retirement crisis,” Beene said.
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.
“A cut to benefits could push many seniors deep into poverty, leaving it to their loved ones or other social programs to pick up the slack, all coming at a great economic cost,” Power said.
What Happens Next
Congress is going to face increasing pressure to fix Social Security’s finances as the projected 2032 trust fund depletion date nears.
Historically, lawmakers have acted before benefits were automatically reduced, but there is currently no consensus plan to fix the program’s finances.
“I would expect over the coming years retirement security to become an increasingly urgent economic and will ultimately force Congress to make strong changes to existing policy to ensure systems are in place to help America’s seniors,” Beene said.
Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas