Retirement Social Security

Senior Poverty Just Hit a 5-Year High - And Proposed Social Security Cuts Could Make It Worse

Increased senior poverty rates pressure Congress to save Social Security.

By Paige Cerulli , Edited by Laura Hohenstein

Updated Oct. 3, 2026

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As Congress debates potential solutions to avoid cutting Social Security senior benefits, new data reveals that senior poverty has increased for a fifth straight year, emphasizing the impact that benefit cuts could have on this population. The data indicates that many seniors are already in a precarious financial position, and the problem is growing year over year.

This news adds even more meaningful framing to the issue of Social Security's approaching insolvency and the fact that benefit cuts may still occur if Congress doesn't implement a fix.

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The data on senior poverty

The U.S. Census Bureau's annual poverty report indicates that the poverty rate for Americans ages 65 and up increased to 15.4% in 2025. The figure, which is based on the supplemental poverty measure (SPM), is the highest poverty rate of all of the age groups.

Poverty is a growing issue for seniors, and the poverty level among seniors has increased every year since 2020. In 2025, more than 10 million adults aged 65 and older were below the SPM poverty threshold.

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Understanding the SPM

Census data uses several poverty measures, including the official poverty measure (OPM) and the SPM. The OPM captures information like how changes in earnings and other cash income affect a population.

The SPM tends to provide a more complete look at families' needs and resources than the OPM. The SPM reflects the economy, but it also shows how taxes and non-cash benefits, like food assistance, may affect a population. SPM data includes non-cash benefits, but essential expenses like taxes and medical care are deducted.

The problem of Social Security's trust fund insolvency

The 2026 Social Security Trustees report projects that the Old-Age and Survivors Insurance (OASI) Trust Fund may be depleted by the fourth quarter of 2032. That's one quarter earlier than the 2025 report projected.

If the fund becomes depleted, the OASI projects that the Social Security program's revenue may only be sufficient to pay 78% of the total scheduled benefits. As a result, benefits may be automatically cut by approximately 22%, leaving seniors with smaller Social Security checks each month.

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The potential size of benefit cuts

As of May 2026, the average Social Security retirement benefit was $2,083 per month. If benefits shrank by 22%, an average retiree would receive $1,625 per month, a reduction of $458 per month.

Keep in mind that the calculation uses today's benefit amounts, and it could be an even greater drop by 2032. Social Security benefits often increase each year when a cost-of-living adjustment is applied, so a cut six years from now might be even more significant.

How poverty among seniors might worsen without Social Security

Social Security benefits play a key role in helping to keep people, including seniors, out of poverty. According to the Center on Budget and Policy Priorities (CBPP), Social Security benefits help reduce poverty in every state, and the benefits help lift more people above the poverty line than any other United States program.

The 2024 data indicates that 23.5 million more adults and children in the United States would be below the poverty line without Social Security. Of those, most are age 65 or older, though 6.5 million are under age 65, including 1.1 million children.

The Census Bureau report indicates that Social Security benefits had an even greater impact recently, lifting 28.8 million people above the poverty line. "Social Security was the largest antipoverty program in 2025, especially for those 65 years and older. Over 70% of the people pulled out of poverty by Social Security (20.9 million individuals) fell into that age group."

The CBPP reports that Social Security benefits are particularly important for older women and people of color, since these populations may have access to fewer retirement resources.

Understanding how low-income seniors live

In 2026, AARP Foundation launched the Economic Security Monitor to provide data on the experiences of people aged 50 and above who live with low income. The summer Monitor revealed that nearly 9 in 10 adults age 50+ living with low income reported that rising prices are one of their top financial concerns. It also found that 33% couldn't cover an emergency expense of more than $100 with their savings. Additionally, 32% of respondents reported that their household ran out of food before they had money to buy more.

The Monitor's findings drive home just how precarious some older adults' financial situations are, and how financially devastating a Social Security benefits reduction could be.

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Bottom line

A benefits cut in the 2030s could heavily impact the senior population, which is already losing ground in staying above the poverty level. This issue doesn't reflect the situation of any one person, but is rather evidence of the broader demographic and policy trend that Congress needs to be aware of as the Social Security trust fund faces insolvency. At this time, Congress has yet to implement a solution, though there are several proposed ideas on the table.

Hopefully Congress prevents any reductions to Social Security benefits, but nothing is certain at this time. It might be a good idea to revisit your retirement plan to see how you could get by if your benefits were reduced.

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