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Seniors' incomes rise, but poverty persists
16 Sep
Summary
- Household income for seniors rose 3.1% in 2025, matching workers.
- Older adults increasingly rely on jobs and retirement accounts.
- Poverty rate for seniors remained unchanged in 2025.
In 2025, households led by individuals aged 65 and older experienced a median income increase of 3.1%, reaching $59,680. This growth mirrored the 2.7% rise seen in working-age households. Overall household median income hit a record high of $87,460.
Despite these gains, the poverty rate for older Americans remained unchanged in 2025. This occurred while poverty rates declined for all other age demographics, signaling increasing precarity for seniors due to rising prices and a strained social safety net.
Analysis of income sources reveals a notable shift. While Social Security benefits saw a 2.5% cost-of-living adjustment, they provided no real gain. Consequently, older adults are increasingly turning to employment and retirement accounts to supplement their income. Households aged 65-74 reported a median income of $68,800, while those 75 and older had $50,880.
Among those 65-74, jobs contributed significantly, with earners making a median of $45,960, more than double their Social Security benefits. For those 75 and older, Social Security became a larger proportion of income, with only 10% employed. Pensions remain a more common income source than 401(k)s or IRAs for this age group.
