Senior Poverty Reaches 15.4% as Social Security Faces a 2032 Deadline

More Americans are struggling to make ends meet, even as Social Security remains the country’s largest anti-poverty program.

The poverty rate for Americans age 65 and older rose to 15.4% in 2025, the highest rate among all age groups, according to the U.S. Census Bureau’s latest poverty report. That compares with 9.4% in 2020 and represents more than 10 million older adults.

At the same time, Social Security faces a major funding deadline. The retirement trust fund is projected to run out of reserves in the final months of 2032, which could trigger an automatic benefit reduction if Congress does not act. 
 

Older Americans have seen poverty rise

Seniors are the only major age group whose Supplemental Poverty Measure (SPM) poverty rate has increased every year since 2020.

The SPM is different from the official poverty measure. It includes noncash benefits and considers expenses such as:

• Taxes.

• Medical costs.

• Housing expenses.

• Work-related costs.

• Government assistance.

Because it accounts for necessary expenses, the Census Bureau considers the SPM a more detailed measure of how older households are managing financially.

The overall SPM rate for all Americans was 13.1% in 2025, compared with 13% in 2024.
 

Social Security lifted millions above poverty

Without Social Security, the number of older Americans living in poverty would have been much higher.

The Census Bureau reported that Social Security lowered the national SPM poverty rate by 8.5 percentage points and lifted 28.8 million people above the poverty line in 2025. More than 20 million of those people were age 65 or older.

That makes Social Security the largest anti-poverty program in the United States, particularly for retirees who depend on monthly benefits for housing, food, health care and utilities.

Other programs, including SSI, SNAP and Medicare Savings Programs, also help lower-income seniors cover essential costs.
 

Social Security trust fund could run short in 2032

The Social Security retirement trust fund is projected to be depleted in the final three months of 2032, according to the 2026 Social Security Trustees Report.

If Congress does not approve changes, payroll tax income would continue coming into the program, but it would not be enough to pay all scheduled benefits. The result would be an estimated 22% across-the-board benefit cut.

The average reduction could be about $500 per month, according to the Committee for a Responsible Federal Budget.

For a retiree receiving $2,000 per month, a 22% reduction would equal approximately $440 less each month. The exact reduction would vary based on the person’s benefit.
 

Why the deadline matters for seniors

A cut of that size could be especially difficult for older adults already living near the poverty line.

Many retirees use Social Security to pay for:

• Rent or mortgage payments.

• Groceries.

• Prescription drugs.

• Medicare premiums.

• Utilities.

• Transportation.

• Home and personal care.

A benefit reduction could force some seniors to cut back on food, delay medical care or seek help from family and public assistance programs.

The Census data shows how important Social Security is now. A future reduction could affect millions of people who already rely on the program to remain above the poverty line.
 

What could Congress do?

Lawmakers have several possible options, including:

• Raising Social Security payroll taxes.

• Increasing the taxable wage cap.

• Changing benefit formulas.

• Raising or eliminating the payroll tax limit.

• Adjusting retirement or eligibility rules.

• Combining tax increases with benefit changes.

No final solution has been approved. Any changes would require congressional action and presidential approval.
 

Bottom line

Senior poverty rose to 15.4% in 2025, while Social Security lifted nearly 29 million people above the poverty line. At the same time, the program’s retirement trust fund is projected to run out of reserves in late 2032.

Without congressional action, retirees could face an automatic benefit cut of about 22%, or roughly $500 per month on average.

For now, beneficiaries should follow updates from the Social Security Administration and review other programs that may provide assistance, including SSI, SNAP and Medicare cost-saving programs.

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