Economic squeeze is driving higher poverty rates for older adults, AARP analysis finds

AARP Foundation analysis of Census data and its own survey work shows rising poverty among older Americans even as the overall U.S. poverty rate fell to a record low in 2025. The foundation uses a supplemental poverty measure that factors in taxes, government benefits and common expenses, producing a different picture for people approaching and in retirement.

Social Security made a measurable difference last year: Census data counted nearly 29 million people kept out of poverty by those benefits. Still, the AARP Foundation says the gains in overall household income and lower headline poverty were not shared equally by older adults.

AARP Foundation surveys of low-income older adults report immediate strains. In the summer survey, nearly a third of respondents said their households ran out of food before they could buy more. A third said they lacked enough savings to cover a $100 emergency expense. Nearly a third of adults 50–64 reported a significant drop in household income in the prior three months.

Many older workers who remain employed have added extra paid work. The foundation found the share of employed older adults with at least one additional source of paid work rose to about two-thirds, suggesting people are piecing income together to cover basic needs.

The supplemental measure captures costs and benefits missed by the official poverty rate. It shows that for many older adults, steady income gains at the national level haven't translated into secure retirement pathways. Small shocks — a car repair, temporary leave to care for a relative, a rent increase — can push older workers into long-term unemployment or lower-paying jobs that reduce retirement savings and future security.

A changing economy since the data was collected

The Census figures are for 2025. AARP Foundation notes that economic conditions have changed since then, with inflationary pressures and higher fuel costs tied to geopolitical developments affecting household budgets. The foundation and other analysts warn that cuts to safety-net programs and rising prices could quickly erase recent gains for vulnerable older households.

Households with little savings or unstable work are at risk of falling further behind as costs rise or benefits change. Policy shifts that reduce benefits or tighten eligibility, along with higher living costs, could increase the number of older adults who rely on emergency food assistance, patchwork work arrangements, or family support.

The supplemental poverty measure and AARP Foundation survey data point to growing financial fragility among people in the decade before retirement and among seniors, especially women. Surface-level national gains in income and headline poverty don't capture these rising vulnerabilities.