Senior Poverty Rate Rises as Social Security Funding Gap Looms
New Census data shows a sharp increase in poverty among Americans aged 65 and older, while Social Security faces a projected funding shortfall that could trigger automatic benefit cuts.
According to the Census Bureau, the proportion of adults 65 and older in poverty under the Supplemental Poverty Measure rose from 9.4% in 2020 to 15.4% in 2025, meaning more than ten million seniors now fall below the poverty line. While the overall U.S. poverty rate fell to 10.2% in 2025, older Americans face a stark opposite trend. Social Security remains the primary anti-poverty program for retirees, yet the 2026 Trustees Report projects the program's main trust fund will run out of reserves by 2032, after which incoming payroll taxes would cover only about 78% of promised benefits.
Analysts warn that automatic cuts of roughly 22% could strip hundreds of dollars from each beneficiary each month, exacerbating the impact of rising housing and medical expenses. Financial experts stress that the looming cuts could turn today's affordability concerns into a broader retirement crisis, increasing pressure on Congress to act before automatic reductions take effect.
Why it matters
Rising senior poverty and possible Social Security cuts could push millions of retirees into deeper financial hardship.
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