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New figures from the Census Bureau show poverty among older Americans has increased sharply: the adjusted poverty rate for people 65 and older rose from 9.4% in 2020 to 15.4% in 2025, driven in part by medical bills and long-term care costs. An analysis of Census microdata finds the overall adjusted poverty rate for all Americans was 13.1% in 2025, up from 9.1% in 2020. The Census Bureau figures and related sources point to rising out-of-pocket medical spending, higher nursing-home prices and housing cost burdens that are eroding retirement savings and pushing some would-be retirees back into work. Credit: businessinsider.com
We should get tax breaks after a certain age because prices are so high for food,
Rebecca Reed
Key takeaways
- The adjusted poverty rate for all Americans rose from 9.1% in 2020 to 13.1% in 2025.
- For Americans aged 65 and older the adjusted poverty rate climbed from 9.4% in 2020 to 15.4% in 2025.
- Social Security kept 28.8 million Americans out of poverty in 2025, including nearly 21 million aged 65 and older.
- Medical expenses pushed 7.7 million Americans into poverty in 2025; about 2.5 million of those were 65 and older, up from around 2.36 million in 2024.
Table of contents
What the new numbers actually show
The Census measures used here are the adjusted or supplemental poverty indicators that include tax credits and some noncash benefits. Under that measure the share of all Americans below the threshold rose from 9.1% in 2020 to 13.1% by 2025, and the rise has been largest among older cohorts. For people 65 and older the rate moved from 9.4% in 2020 to 15.4% in 2025, an increase of about 6.0 percentage points when compared to the earlier figure.
The dataset behind these percentages is Census microdata that were analyzed to break the trend down by age group and cause. That analysis shows that medical spending and long-term care are meaningful contributors to the deterioration in retirement security; the Census Bureau estimated that 7.7 million people fell into poverty because of medical expenses in 2025, and about 2.5 million of those newly impoverished were 65 or older.
How medical and long‑term‑care costs push retirees over the edge
Families and older households report large outlays for care. CareScout reports that the typical annual charge for a private nursing‑home room increased from $111,000 in 2022 to $130,000 in 2025. Those sums can exhaust retirement savings in just a few years, and the Census Bureau shows medical expenses remain a direct pathway into poverty for millions.
Interviewed households described six-figure bills for surgeries, treatment and long-term home aides. The Census counted 7.7 million people pushed into poverty by medical costs in 2025; roughly 2.5 million of those were aged 65 and older, a rise from about 2.36 million in 2024. Those shifts help explain why some people in their late 60s and early 70s are delaying retirement or taking minimum‑wage work to cover basics.
Housing costs, homelessness and the limits of safety nets
Housing is another pressure point. A 2025 study from Harvard University's Joint Center for Housing Studies found that more than one in three older American households spends 30% or more of their income on housing, a standard cost‑burden threshold. For older renters and those needing home repairs, that squeezes budgets already strained by health spending.
Homelessness among older people is rising: as of 2024 about 20% of all people experiencing homelessness were aged 55 and older, underscoring how housing and health shocks can collide for older households. Social Security remains the single largest program keeping older Americans out of poverty; Census estimates attribute 28.8 million people to Social Security’s poverty‑preventing effect in 2025, including nearly 21 million aged 65 and up, but those benefits often do not cover heavy medical or care costs.
The human side: work, savings and unexpected bills
Reporting that accompanied the data found dozens of older workers supplementing small Social Security checks with part‑time jobs. Some interviewees were in their 80s: Rebecca Reed, 88, who works two lower‑paying jobs in New Orleans, said she struggles with food prices and called for tax relief for older people. Sharon Albrecht, 85, said part‑time work helped her stretch Social Security and retirement savings but acknowledged many peers do not have that option.
Those accounts mirror the numbers: when families spend tens of thousands on home health aides or assisted living, retirement balances can be depleted rapidly and people who expected to stop working find they must return to the labor force. The combination of rising medical bills, higher nursing‑home fees and housing burdens is the mechanical pathway the Census data identify as driving the recent increases in older‑adult poverty.
| Measure | 2020 | 2025 |
|---|---|---|
| All Americans (adjusted) | 9.1% | 13.1% |
| Ages 65 and older (adjusted) | 9.4% | 15.4% |
How this could evolve
The case for
- If policymakers expand cost‑sharing protections for Medicare or increase targeted benefits, out‑of‑pocket medical spending could fall and reduce the number pushed into poverty by medical bills.
- Slower nursing‑home price growth or greater support for home‑based care would limit the rapid wealth erosion that heavy care bills cause and could stabilise the 65+ poverty rate.
The case against
- If nursing‑home prices keep rising at recent rates and housing remains costly, retirement savings will continue to be eaten away and the adjusted poverty rate for older cohorts could stay elevated.
- An ageing population with longer lifespans increases demand for long‑term care; without expanded public subsidies that could raise the number of older households exposed to catastrophic care costs.
What to be careful about
- Rising nursing‑home and long‑term‑care costs that outpace benefit growth and savings.
- Medical spending shocks that push households with modest savings into poverty; Census counts 7.7 million people affected in 2025.
- Housing cost burdens for older renters and homeowners needing repairs, with more than one in three older households spending 30%+ of income on housing.
- Growing homelessness among older adults: about 20% of people experiencing homelessness were 55+ as of 2024.
The bottom line
The recent Census and related datasets show a clear pattern: older Americans’ financial security has weakened, with the adjusted poverty rate for those 65+ rising to 15.4% in 2025. Medical bills, rising nursing‑home prices and housing cost burdens are the proximate drivers documented in the data and in interviews with older workers. Social Security continues to prevent widespread destitution for many, but it is frequently insufficient to cover catastrophic care or sustained housing costs. Policymakers and advocates who want to reverse this trend must focus on the specific cost drivers the Census identifies: out‑of‑pocket medical spending, long‑term‑care fees and housing affordability.
What to watch
- Watch for the next supplemental poverty release from the Census; no date has been set.
- Watch for updated cost data from CareScout on nursing‑home prices for 2026 or 2027; no date has been set.
Frequently asked questions
How much did poverty rise for people 65 and older?
The adjusted poverty rate for people 65 and older rose from 9.4% in 2020 to 15.4% in 2025, an increase of about 6.0 percentage points.
How many people fell into poverty because of medical costs?
Census figures show 7.7 million Americans fell into poverty due to medical expenses in 2025, and about 2.5 million of them were 65 or older, up from around 2.36 million in 2024.
What role does Social Security play in these statistics?
The Census estimates Social Security kept 28.8 million Americans out of poverty in 2025, including nearly 21 million people aged 65 and older, but those benefits often do not cover large long‑term care bills.
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