Key facts
- The poverty rate for Americans 65 and older has increased significantly since 2020.
- Social Security benefits kept 28.8 million Americans out of poverty in 2025, including nearly 21 million aged 65 and older.
- Medical expenses caused 7.7 million Americans to fall into poverty, with 2.5 million of them being 65 or older.
- The median cost of a private nursing home room increased to $130,000 annually by 2025.
- More than one in three older American households dedicate 30% or more of their income to housing costs.
- Older Americans are the fastest-growing demographic experiencing homelessness.
Older Americans are increasingly falling into poverty as pandemic-era financial support has ended and costs for essentials like healthcare and housing continue to rise. The supplemental poverty rate for individuals aged 65 and older has seen a notable increase, growing from 9.4% in 2020 to 15.4% in 2025, according to new Census data. This trend is occurring even as lifespans lengthen, placing greater strain on retirement benefits like Social Security.
Social Security played a crucial role in keeping millions of Americans out of poverty in 2025, including nearly 21 million individuals aged 65 and older. However, these benefits often fall short of covering daily expenses, Medicare premiums, and caregiving costs. The poverty rate has also begun to tick up for younger retirement-aged Americans, with those aged 70 to 74 experiencing the largest percentage-point increase in poverty from 2020 to 2024.
Medical expenses are a significant driver of poverty, contributing to financial hardship for 7.7 million Americans, approximately 2.5 million of whom are 65 or older. The cost of nursing home care has risen, with the median annual cost reaching $130,000 by 2025, leading some families to exhaust savings and rely on their children for financial support. Housing costs also present a substantial burden, with over one-third of older American households dedicating at least 30% of their income to housing. Furthermore, older adults are the fastest-growing demographic experiencing homelessness.