Poverty Among the Population Aged 65 and Older

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Poverty Among the Population Aged 65 and
~~April 14, 2021~~December 6, 2022
Older
Zhe Li
Among the aged population (persons aged 65 and older) in the United States, the Among the aged population (persons aged 65 and older) in the United States, the poverty rate
Analyst in Social Policy Analyst in Social Policy
(the percentage of individuals living in (the percentage of individuals living in poverty, or economic hardship characterized by low or economic hardship characterized by low

income) has declined by over two-thirds in the past five decades. In income) has declined by over two-thirds in the past five decades. In ~~2019~~2021, approximately , approximately ~~8.9% of~~10.3%
Joseph Dalaker
of aged individuals had income below the poverty thresholds (dollar amounts used to determine aged individuals had income below the poverty thresholds (dollar amounts used to determine
Analyst in Social Policy Analyst in Social Policy
poverty status). However, the poverty status). However, the number of aged poor has increased since the mid-1970s as the total of aged poor has increased since the mid-1970s as the total

number of the aged population has grown. In number of the aged population has grown. In ~~2019, 4.9~~2021, 5.8 million people aged 65 and older lived in million people aged 65 and older lived in
poverty. poverty.

The poverty rate for the aged population historically was higher than the rates for younger groups, but the aged have The poverty rate for the aged population historically was higher than the rates for younger groups, but the aged have
experienced lower poverty rates than children under age 18 since 1974 and lower rates than adults aged 18-64 since the early experienced lower poverty rates than children under age 18 since 1974 and lower rates than adults aged 18-64 since the early
1990s. In 1990s. In ~~2019~~2021, the , the ~~8.9~~10.3% poverty rate among individuals aged 65 and older was lower than the % poverty rate among individuals aged 65 and older was lower than the ~~9.4~~10.5% poverty rate among % poverty rate among
adults aged 18-64 and the adults aged 18-64 and the ~~14.4~~15.3% poverty rate among children under 18 years old. % poverty rate among children under 18 years old.
Although the poverty rate has generally declined for the aged population in most demographic groups, certain subgroups of Although the poverty rate has generally declined for the aged population in most demographic groups, certain subgroups of
the aged population still had disproportionately higher poverty rates as of the aged population still had disproportionately higher poverty rates as of ~~2019~~2021. For example: . For example:
 People aged 80 and older have a higher poverty rate than other aged people. Approximately  People aged 80 and older have a higher poverty rate than other aged people. Approximately ~~11.1~~12.9% of % of
people aged 80 and older lived in poverty, compared with poverty rates of 9. people aged 80 and older lived in poverty, compared with poverty rates of 9.25% among individuals aged % among individuals aged
75-79, 75-79, ~~7.4~~9.7% among those aged 70-74, and % among those aged 70-74, and ~~8.4~~9.6% among those aged 65-69. Women aged 80 and older had % among those aged 65-69. Women aged 80 and older had
the highest poverty rate among older the highest poverty rate among older ~~women and men~~persons in all age groups at in all age groups at ~~13.6~~14.7% for women aged 80 and % for women aged 80 and
older. older.
 Individuals aged 65 and older who were not married at the time of the survey generally had a higher  Individuals aged 65 and older who were not married at the time of the survey generally had a higher
poverty rate than those who were married and living poverty rate than those who were married and living ~~together~~ with spouses. Among women aged 65 and with spouses. Among women aged 65 and
older, about older, about ~~14.4~~15.5% of widows, % of widows, ~~15.8~~17.1% of divorced women, and % of divorced women, and ~~16.9~~19.5% of never-married women had total % of never-married women had total
incomes below the official poverty threshold compared with incomes below the official poverty threshold compared with ~~4.7~~5.8% of married women. Among individuals % of married women. Among individuals
aged 65 and older, poverty rates were also aged 65 and older, poverty rates were also ~~high~~higher among never-married men at 18. among never-married men at 18.67%. %.
 Poverty rates vary by race and Hispanic origin. Hispanic origin is distinct from race, and people may  Poverty rates vary by race and Hispanic origin. Hispanic origin is distinct from race, and people may
identify with one or more races. In identify with one or more races. In ~~2019~~2021, the poverty rate was , the poverty rate was ~~18.0~~17.8% among % among ~~those~~aged individuals identifying as identifying as single-race Black or Black or
African American compared with African American compared with ~~17.1~~18.7% for those identifying as Hispanics% for those identifying as Hispanics of any race, 13~~, 9~~.3% for the .3% for the single-race Asian population, Asian population,
~~and 6.8% for the~~ 19.7% for the single-race American Indian and Alaska Native population, 8.0% for the single-race non-Hispanic White population, and 14.2% for the aged population identifying with more than one race~~non-Hispanic White population~~. .
The official poverty measure used in the United States is defined using cash income only, before taxes, and is computed The official poverty measure used in the United States is defined using cash income only, before taxes, and is computed
based on food consumption in 1955 and food costs in 1961, indexed to inflation. That definition prevents the official measure based on food consumption in 1955 and food costs in 1961, indexed to inflation. That definition prevents the official measure
from gauging the effects of noncash benefits, taxes, or tax credits on the low-income population, and it does not consider how from gauging the effects of noncash benefits, taxes, or tax credits on the low-income population, and it does not consider how
certain other costs, such as housing or medical expenses, might affect them as well. After decades of research, the certain other costs, such as housing or medical expenses, might affect them as well. After decades of research, the
Supplemental Poverty Measure (SPM) was developed to address some of the official poverty measure’s limitations. The Supplemental Poverty Measure (SPM) was developed to address some of the official poverty measure’s limitations. The
SPM poverty rate for the aged population is higher than the official poverty rate (SPM poverty rate for the aged population is higher than the official poverty rate (~~12.8~~10.7% compared with % compared with ~~8.9~~10.3% in % in ~~2019~~2021). This ). This
higher poverty rate results largely from higher medical out-of-pocket costs among the aged. higher poverty rate results largely from higher medical out-of-pocket costs among the aged.
Social Security and Supplemental Security Income (SSI) are the main federally funded programs that provide Social Security and Supplemental Security Income (SSI) are the main federally funded programs that provide cash benefits to benefits to
the aged poor. They accounted for almost 90% of total money income received by the aged population whose incomes were the aged poor. They accounted for almost 90% of total money income received by the aged population whose incomes were
below the poverty thresholds in below the poverty thresholds in ~~2019~~2021. The federal government also provides certain noncash benefits to help the aged poor, . The federal government also provides certain noncash benefits to help the aged poor,
such as housing subsidies and the Supplemental Nutrition Assistance Program (SNAP). In such as housing subsidies and the Supplemental Nutrition Assistance Program (SNAP). In ~~2019~~2021, the SPM poverty rate among , the SPM poverty rate among
individuals aged 65 and older would increase by more than 32 percentage points if Social Security benefits were excluded individuals aged 65 and older would increase by more than 32 percentage points if Social Security benefits were excluded
from their income resources, holding other economic behaviors constant. Among the other resources, eliminating SSI, from their income resources, holding other economic behaviors constant. Among the other resources, eliminating SSI,
housing subsidies, or SNAP from income would each increase the SPM poverty rate by about one percentage point. housing subsidies, or SNAP from income would each increase the SPM poverty rate by about one percentage point.
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Contacts
Author Information ........................................................................................................................ 21

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Poverty Among the Population Aged 65 and Older

Introduction
The The aged population (persons age 65 and older) has been and continues to be of interest to population (persons age 65 and older) has been and continues to be of interest to
Congress for various federal policies. Several government programs have contributed to increased Congress for various federal policies. Several government programs have contributed to increased
incomes among the aged, including Old Age, Survivor and Disability Insurance (OASDI, incomes among the aged, including Old Age, Survivor and Disability Insurance (OASDI,
commonly known as Social Security) and Supplemental Security Income (SSI).1 However, commonly known as Social Security) and Supplemental Security Income (SSI).1 However,
certain groups of the aged population—such as widows, divorced women, and never-married men certain groups of the aged population—such as widows, divorced women, and never-married men
and women—are and women—are ~~stil~~ still vulnerable to poverty. In light of those facts, Congress may be interested in vulnerable to poverty. In light of those facts, Congress may be interested in
the incidence of poverty among the aged and the effect of existing programs that reduce poverty.2 the incidence of poverty among the aged and the effect of existing programs that reduce poverty.2
To address that interest, this report presents time trends and the most recently available To address that interest, this report presents time trends and the most recently available poverty
rates (percentages of individuals that are in (percentages of individuals that are in poverty, or economic hardship characterized by low , or economic hardship characterized by low
income) among the aged population in the United States both as a whole and by demographic income) among the aged population in the United States both as a whole and by demographic
group.3 This report also discusses how federal programs that may provide assistance to the aged group.3 This report also discusses how federal programs that may provide assistance to the aged
poor affect estimates of poverty among the aged. poor affect estimates of poverty among the aged.
Most of this report Most of this report ~~wil~~ will examine poverty among the aged population using the official measure of examine poverty among the aged population using the official measure of
poverty, because it has been in use for over 50 years and provides a consistent time series for poverty, because it has been in use for over 50 years and provides a consistent time series for
examining demographic trends. Analysis of aged poverty in this report is for the time period from examining demographic trends. Analysis of aged poverty in this report is for the time period from
1966 to 1966 to ~~2019, before the onset of COVID-19~~2021. The poverty rate among the aged has declined by . The poverty rate among the aged has declined by
~~over~~about two-thirds over the past five decades from 28.5% in 1966 to two-thirds over the past five decades from 28.5% in 1966 to ~~8.9~~10.3% in % in ~~2019~~2021.4 In .4 In ~~2019, 4.9~~
~~mil ion~~ 2021, 5.8 million aged individualsaged individuals had incomes below the had incomes below the poverty thresholds (dollar amounts used to (dollar amounts used to
determine poverty status).5determine poverty status).5
The official measure has some limitations, among them a limited The official measure has some limitations, among them a limited ability to gauge the impact of ability to gauge the impact of
federal programs on the federal programs on the ~~wel~~ well-being of the poor. Researchers inside and outside the government -being of the poor. Researchers inside and outside the government
developed a newer measure, the Supplemental Poverty Measure (SPM), to address the developed a newer measure, the Supplemental Poverty Measure (SPM), to address the

~~1 See CRS~~ weaknesses of the official measure. Statistics on the aged population using the SPM are presented 1 See CRS Report R42035, Report R42035, Social Security Primer; and CRS; and CRS In FocusIn Focus IF10482, IF10482, Supplemental Security Income (SSI). .
2 Congress has seen proposals to improve income among vulnerable groups of the older population, such as changing 2 Congress has seen proposals to improve income among vulnerable groups of the older population, such as changing
the factors used in the Social Securitythe factors used in the Social Security benefit formula, revising the minimum benefit for long-term low-wagebenefit formula, revising the minimum benefit for long-term low-wage earners, earners,
increasing Socialincreasing Social Security benefits for certain survivors, increasing the Social Security costSecurity benefits for certain survivors, increasing the Social Security cost -of-living adjustments, and -of-living adjustments, and
modifying the SSImodifying the SSI program to increase payment amounts by changing income exclusions and resource thresholds. program to increase payment amounts by changing income exclusions and resource thresholds.
3 For details on the definition and measurement of poverty, see CRS3 For details on the definition and measurement of poverty, see CRS Report R44780, Report R44780, An Introduction to Poverty
~~Measurem ent~~Measurement. .
4 In this report, numbers and percentages of those in poverty are based 4 In this report, numbers and percentages of those in poverty are based on the U.S. Censuson the U.S. Census Bureau’sBureau’s estimates. estimates.
National-level data in this report are obtained from the Current Population Survey Annual SocialNational-level data in this report are obtained from the Current Population Survey Annual Social and Economic and Economic
Supplement (CPS ASEC)Supplement (CPS ASEC) conducted byconducted by ~~t he~~ the U.S. Census U.S. Census Bureau.Bureau. ~~Age~~ Age is measuredis measured at the time of the interview at the time of the interview
(February, March, or April), but annual income is based(February, March, or April), but annual income is based on the previous year. While the official poverty measure is on the previous year. While the official poverty measure is
often regarded as a statistical yardstick rather than a complete often regarded as a statistical yardstick rather than a complete ~~descrip tion~~description of what people and families need to live, it of what people and families need to live, it
offers a measure of economic hardship facedoffers a measure of economic hardship faced by the low-income population by comparing family income against a by the low-income population by comparing family income against a
dollar amount called a dollar amount called a poverty threshold, a level below, a level below which a family is consideredwhich a family is considered to be poor. Research indicates to be poor. Research indicates
that, due to COVID-19, the nonresponse to the 2020 CPS ASECthat, due to COVID-19, the nonresponse to the 2020 CPS ASEC increased substantially compared to surveys in prior increased substantially compared to surveys in prior
years. years. ~~T his~~This nonresponse likely biased nonresponse likely biased income estimates up and poverty statistics down. For more information, see income estimates up and poverty statistics down. For more information, see
Jonathan Rothbaum and Adam Bee, Jonathan Rothbaum and Adam Bee, Coronavirus Infects Surveys, Too: Nonresponse Bias During the ~~Pandem ic~~Pandemic in the
CPS ASEC, U.S., U.S. ~~Census~~ Census Bureau,Bureau, September 15, 2020, https://www.census.gov/content/dam/Census/library/working-September 15, 2020, https://www.census.gov/content/dam/Census/library/working-
papers/2020/demo/sehsd-wp2020-10.pdf. papers/2020/demo/sehsd-wp2020-10.pdf.
5 5 ~~T he~~The poverty thresholds vary by family size poverty thresholds vary by family size and composition. For example, in and composition. For example, in ~~2019~~2021, a single individual, a single individual under ageunder age 65
~~was considered~~ 65 was considered to be living in poverty if that person’s income was lessto be living in poverty if that person’s income was less than $than $~~13,300~~14,097; for an individual 65 and over, ; for an individual 65 and over,
$12,$12,~~261~~996; for a person 65 or older living with one child under; for a person 65 or older living with one child under 18, $18, $~~17,555~~18,606; for an adult (of any age) and two children, ; for an adult (of any age) and two children,
$$~~20,598~~21,831; and for two adults; and for two adults and two children, $and two children, $~~25,926~~27,479. In all, 48 thresholds are used.. In all, 48 thresholds are used. ~~T hese~~ These thresholds do not vary thresholds do not vary
geographically, butgeographically, but they are updated annually for inflation using the Consumer Price Index. For further explanation, see they are updated annually for inflation using the Consumer Price Index. For further explanation, see
CRSCRS Report R44780, Report R44780, An Introduction to Poverty ~~Measurem ent~~Measurement. .
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Poverty Among the Population Aged 65 and Older

~~weaknesses of the official measure. Statistics on the aged population using the SPM are presented~~
at the end of this report in order to better at the end of this report in order to better ~~il ustrate~~illustrate the impact of federal programs on the aged the impact of federal programs on the aged
poor. This report compares official poverty data for the aged population with data from the SPM poor. This report compares official poverty data for the aged population with data from the SPM
and provides statistics measuring the impact of federal cash benefits (mainly Social Security and and provides statistics measuring the impact of federal cash benefits (mainly Social Security and
SSI), taxes, and in-kind benefits (such as housing, energy, and food assistance) on aged poverty. SSI), taxes, and in-kind benefits (such as housing, energy, and food assistance) on aged poverty.
While it received scrutiny from the academic and federal research community, the SPM is While it received scrutiny from the academic and federal research community, the SPM is
considered a research measure—it addresses many, but not considered a research measure—it addresses many, but not al all, of the limitations of the official , of the limitations of the official
measure, and its methodology is refined measure, and its methodology is refined ~~periodical y~~periodically to make use of newer data sources and to make use of newer data sources and
improved measurement techniques.6 improved measurement techniques.6
How the Official Poverty Measure Is Computed
Poverty status is determined by comparing a measure of a family’s resources against a measure of Poverty status is determined by comparing a measure of a family’s resources against a measure of
its needs.7 Families whose resources are less than a dollar amount representing an austere level of its needs.7 Families whose resources are less than a dollar amount representing an austere level of
“needs” are considered to be in poverty.8“needs” are considered to be in poverty.8
Defining resources and needs is not straightforward. The official poverty measure is based on 48 Defining resources and needs is not straightforward. The official poverty measure is based on 48
dollar amounts dollar amounts ~~cal ed~~called poverty thresholds that vary by family size and composition but not by that vary by family size and composition but not by
geographic area.9 These official thresholds were developed in the 1960s using data availablegeographic area.9 These official thresholds were developed in the 1960s using data available at at
the time and are updated the time and are updated ~~annual y~~annually for inflation. Rather than by determining amounts for for inflation. Rather than by determining amounts for al all major major
goods and services a family could possibly need, the thresholds were based on the average goods and services a family could possibly need, the thresholds were based on the average
amount of a family’s budget that was spent on food. (As of 1955, this was one-third of a family’s amount of a family’s budget that was spent on food. (As of 1955, this was one-third of a family’s
budget.) Food costs were represented in the thresholds by a U.S. Department of Agriculture food budget.) Food costs were represented in the thresholds by a U.S. Department of Agriculture food
budget designed for families in economic stress. The entire family budget was the cost of this budget designed for families in economic stress. The entire family budget was the cost of this
plan multipliedplan multiplied by three, with some adjustments for couples and individuals. As such, the by three, with some adjustments for couples and individuals. As such, the
thresholds reflect a level of deprivation based on a restrictive food budget and their associated thresholds reflect a level of deprivation based on a restrictive food budget and their associated
costs but are not based on a full enumeration of costs but are not based on a full enumeration of al all items families and individuals need. Family items families and individuals need. Family
resources are measured in dollars and are based on cash income before taxes. That is, income resources are measured in dollars and are based on cash income before taxes. That is, income
from from al all sources—such as Social Security, earnings, pensions, and other cash benefits—are sources—such as Social Security, earnings, pensions, and other cash benefits—are
included in their pre-tax amounts but not the value of noncash benefits such as housing subsidies included in their pre-tax amounts but not the value of noncash benefits such as housing subsidies
or the Supplemental Nutrition Assistance Program (SNAP). or the Supplemental Nutrition Assistance Program (SNAP). Al All poverty data presented in this poverty data presented in this

6 A more thorough description of the SPM methodology may be found in6 A more thorough description of the SPM methodology may be found in ~~CRS~~ CRS Report R45031, Report R45031, The Supplemental
Poverty Measure: Its Core Concepts, ~~Developm ent~~Development, and Use. .
7 7 ~~T he~~The CPS ASEC CPS ASEC is conducted among the civilian, noninstitutional population of the United States. It does not include is conducted among the civilian, noninstitutional population of the United States. It does not include
residents of prisons or nursingresidents of prisons or nursing homes or military personnel living on base. According to the National Center for Health homes or military personnel living on base. According to the National Center for Health
Statistics, an estimated 1.4 million persons residedStatistics, an estimated 1.4 million persons resided in nursing homes in 2016. Of this number, almost 1.2 million (83%) in nursing homes in 2016. Of this number, almost 1.2 million (83%)
werewere ~~aged~~ aged 65 or older. See65 or older. See Centers for DiseaseCenters for Disease Control and Prevention, National Center for Health Statistics, Control and Prevention, National Center for Health Statistics, Vital and
Health Statistics,, February 2019, February 2019, ~~T able~~Table 9, https://www.cdc.gov/nchs/data/series/sr_03/sr0343-508.pdf. For a thorough 9, https://www.cdc.gov/nchs/data/series/sr_03/sr0343-508.pdf. For a thorough
discussiondiscussion of poverty measurement, see CRSof poverty measurement, see CRS Report R44780, Report R44780, An Introduction to Poverty ~~Measurem ent~~.
Measurement. 8 All members of a family have the same poverty status. For persons not living with family members, poverty status is 8 All members of a family have the same poverty status. For persons not living with family members, poverty status is
determined usingdetermined using their own needstheir own needs and resources as if they were a “one-person family.” and resources as if they were a “one-person family.”
9 9 ~~T he~~The measure described measure described and usedand used in this report is a statistical measure of povertyin this report is a statistical measure of poverty —the official poverty thresholds —the official poverty thresholds
publishedpublished by the Census Bureau—andby the Census Bureau—and is is different from another set of dollar figures calleddifferent from another set of dollar figures called poverty guidelines published published
by the U.S. Department of Health and Human Services.by the U.S. Department of Health and Human Services. ~~T he~~ The poverty guidelines are a simplification of the poverty poverty guidelines are a simplification of the poverty
thresholds, are usedthresholds, are used for administrative (not statistical) purposes, and are sometimes referred to (somewhat for administrative (not statistical) purposes, and are sometimes referred to (somewhat
ambiguously)ambiguously) as the as the federal poverty level. Unlike the official poverty thresholds used by. Unlike the official poverty thresholds used by the Census Bureau,the Census Bureau, the the
poverty guidelines includepoverty guidelines include separate dollar amounts for Alaska and Hawaii.separate dollar amounts for Alaska and Hawaii. For detailsFor details ~~see CRS~~ see CRS Report R44780, Report R44780, An
Introduction to Poverty ~~Measurem ent~~Measurement. .
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report are estimates based on a survey, and like report are estimates based on a survey, and like al all survey estimates, they are subject to sampling survey estimates, they are subject to sampling
and nonsampling error.10 and nonsampling error.10
The poverty research community has discussed the official poverty measure’s limitations for The poverty research community has discussed the official poverty measure’s limitations for
decades. Its use of pretax income decades. Its use of pretax income ~~general y~~generally does not does not ~~al ow~~allow for estimating tax credits’ effects on for estimating tax credits’ effects on
the low-income population. It also does not consider in-kind (noncash) benefits (e.g., housing the low-income population. It also does not consider in-kind (noncash) benefits (e.g., housing
subsidies) as income and, as a result, cannot (on its own) subsidies) as income and, as a result, cannot (on its own) ~~il ustrate~~illustrate such benefits’ effects on the such benefits’ effects on the
poor population. Although the measure of need represented by the thresholds is updated every poor population. Although the measure of need represented by the thresholds is updated every
year for year for ~~overal~~ overall inflation,inflation, it may not accurately reflect the current costs of needs. This is because it may not accurately reflect the current costs of needs. This is because
prices for goods and services related to basic needs may not rise at the same rate as prices for the prices for goods and services related to basic needs may not rise at the same rate as prices for the
other items measured in the Consumer Price Index—the tool used to adjust the official poverty other items measured in the Consumer Price Index—the tool used to adjust the official poverty
thresholds for inflation. Since the official measure’s initial development, new data sources have thresholds for inflation. Since the official measure’s initial development, new data sources have
offered more detail on the goods and services families consume, but developing an approach that offered more detail on the goods and services families consume, but developing an approach that
defines basic needs and determines availabledefines basic needs and determines available resources for families to spend on those needs has resources for families to spend on those needs has
taken decades of research and discussion. The SPM resulted from that research and is described taken decades of research and discussion. The SPM resulted from that research and is described
briefly in the section briefly in the section “The Supplemental Poverty Measure.”11 ”11
Poverty Status of the Aged
Notwithstanding the official poverty measure’s limitations, for more than 50 years, it has Notwithstanding the official poverty measure’s limitations, for more than 50 years, it has
provided a consistent measure of poverty in the United States, with few methodological changes provided a consistent measure of poverty in the United States, with few methodological changes
over that time, and it is based on empiricalover that time, and it is based on empirical measures of need (food budgets and food measures of need (food budgets and food
consumption, albeit in 1961 and 1955, respectively).12 For these reasons, trends for the aged consumption, albeit in 1961 and 1955, respectively).12 For these reasons, trends for the aged
population based on the official measure are discussed throughout the rest of the report. population based on the official measure are discussed throughout the rest of the report.
The proportion of the aged population who lived in poverty has declined significantly in the past The proportion of the aged population who lived in poverty has declined significantly in the past
50 years. In 1966, 28.5% of individuals aged 65 and older had family incomes below the poverty 50 years. In 1966, 28.5% of individuals aged 65 and older had family incomes below the poverty

10 Estimates computed using10 Estimates computed using different survey samples willdifferent survey samples will likely differ from one another and from the “true” likely differ from one another and from the “true”
population value, even when the samples are drawnpopulation value, even when the samples are drawn from the same population. from the same population. ~~T he~~The margin of error is a measure of an margin of error is a measure of an
estimate’s variability dueestimate’s variability due to sampling. to sampling. ~~T he~~The larger the margin of error is in relation to the size of the estimate, the less larger the margin of error is in relation to the size of the estimate, the less
reliablereliable is the estimate. is the estimate. ~~T he~~The Census Bureau’s Census Bureau’s estimates from the Current Population Survey (CPS), like estimates from estimates from the Current Population Survey (CPS), like estimates from
other surveys, likely contain nonsampling error—error due to causesother surveys, likely contain nonsampling error—error due to causes other than the fact that a sample wasother than the fact that a sample was ~~used~~ used in place in place
of the entire population (for instance, respondents misremembering or misreporting income amounts, respondents of the entire population (for instance, respondents misremembering or misreporting income amounts, respondents
failing to answer the questionnaire, or errors duringfailing to answer the questionnaire, or errors during ~~t he~~ the processing of the data file). For example, some researchers processing of the data file). For example, some researchers
have expressed concerns that the CPS ASEChave expressed concerns that the CPS ASEC records may underreport pension income to a certain extent, particularly records may underreport pension income to a certain extent, particularly
income from periodic (irregular) distributions from definedincome from periodic (irregular) distributions from defined contribution plans and individualcontribution plans and individual retirement accounts. See retirement accounts. See
Adam BeeAdam Bee and Joshua Mitchell, and Joshua Mitchell, Do Older ~~Am ericans~~Americans Have More ~~Incom e~~Income Than We Think? U.S. U.S. ~~Census~~ Census Bureau,Bureau, July July
2017, https://www.census.gov/content/dam/Census/library/working-papers/2017/demo/SEHSD-WP2017-39.pdf; and 2017, https://www.census.gov/content/dam/Census/library/working-papers/2017/demo/SEHSD-WP2017-39.pdf; and
Anqi Chen, Alicia H. Munnell, andAnqi Chen, Alicia H. Munnell, and Geoffrey TGeoffrey T . Sanzenbacher,. Sanzenbacher, How Much ~~Incom e~~Income Do Retirees Actually Have?
Evaluating the Evidence from Five National Datasets, Center for Retirement Research, November 2018, , Center for Retirement Research, November 2018,
http://crr.bc.edu/working-papers/how-much-income-do-retirees-actually-have-evaluating-the-evidence-from-five-http://crr.bc.edu/working-papers/how-much-income-do-retirees-actually-have-evaluating-the-evidence-from-five-
national-datasets/. national-datasets/.
11 A more comprehensive discussion of how11 A more comprehensive discussion of how the SPM differs from the official poverty measure is available inthe SPM differs from the official poverty measure is available in CRS CRS
Report R45031, Report R45031, The ~~Supplem ental~~Supplemental Poverty Measure: Its Core Concepts, ~~Developm ent~~Development, and Use . .
12 12 ~~T he~~The use of 1961 food budgets use of 1961 food budgets as the basisas the basis of the official poverty measure wasof the official poverty measure was documented in Betty Peterkin,documented in Betty Peterkin, The
Measure of Poverty: Food Plans for Poverty ~~Measurem ent~~~~, T echnical~~Measurement, Technical Paper XII, Department of Health, Education, and Paper XII, Department of Health, Education, and
Welfare, 1976, p. 1, https://www.census.gov/content/census/en/library/publications/1976/demo/measure-of-Welfare, 1976, p. 1, https://www.census.gov/content/census/en/library/publications/1976/demo/measure-of-
poverty.html. Documentation of Mollie Orshansky’s use of the 1955 Household Food Consumption Survey is available poverty.html. Documentation of Mollie Orshansky’s use of the 1955 Household Food Consumption Survey is available
in Gordon Fisher, in Gordon Fisher, The ~~Developm ent~~Development of the Orshansky Poverty Thresholds and Their Subsequent History as the Official
U.S. Poverty Measure, U.S., U.S. ~~Census~~ Census Bureau,Bureau, September 1997, https://www.census.gov/library/working-papers/1997/September 1997, https://www.census.gov/library/working-papers/1997/
demo/fisher-02.html. demo/fisher-02.html.
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thresholds.13 By thresholds.13 By ~~2019~~2021, the poverty rate among the aged population had dropped to , the poverty rate among the aged population had dropped to ~~8.9~~10.3% (see% (see
Figure 1). . One study suggests that increased Social Security retirement benefits explained most One study suggests that increased Social Security retirement benefits explained most
of the decline in poverty among the aged that occurred during 1967-2000.14 However, whereas of the decline in poverty among the aged that occurred during 1967-2000.14 However, whereas
the the proportion of persons aged 65 and older who live in poverty has of persons aged 65 and older who live in poverty has ~~fal en~~fallen over the past five over the past five
decades, the decades, the number of aged poor has increased since the mid-1970s as the total number of the of aged poor has increased since the mid-1970s as the total number of the
aged population has grown. In 1974, 3.1 aged population has grown. In 1974, 3.1 ~~mil ion~~million people aged 65 and older lived in poverty, people aged 65 and older lived in poverty,
whereas in whereas in ~~2019, 4.9 mil ion~~2021, 5.8 million people aged 65 and older lived in poverty. This is partly because people aged 65 and older lived in poverty. This is partly because
many persons in the large cohort of baby boomers (people born between 1946 and 1964) have many persons in the large cohort of baby boomers (people born between 1946 and 1964) have
moved into the 65+ age category and people are living longer than before, on average.15 moved into the 65+ age category and people are living longer than before, on average.15
Figure 1. Number of Individuals Aged 65 and Older Below Poverty and Poverty Rate,
1966-~~2019~~2021
Poverty rates in percentages, number of individuals in thousands. Shaded bars indicate recessions. Poverty rates in percentages, number of individuals in thousands. Shaded bars indicate recessions.

Source: U.S. Census Bureau, U.S. Census Bureau, Current ~~Population~~ Population Survey, 1967-~~2020~~2022 Annual Social and Economic Supplements, ,
“Historical“Historical Poverty Table 3,”Poverty Table 3,” https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-
poverty-people.html.poverty-people.html. ~~Recession~~ Recession dates obtained from National Bureau of Economic Research (NBER), “US dates obtained from National Bureau of Economic Research (NBER), “US
BusinessBusiness Cycle Expansions and Contractions,” http://www.nber.org/cycles/cyclesmain.html.Cycle Expansions and Contractions,” http://www.nber.org/cycles/cyclesmain.html.
Notes: The Census Bureau implemented The Census Bureau implemented a change to the Current Population Survey Annual Sociala change to the Current Population Survey Annual Social and and
Economic Supplements (CPS ASEC) in 2014 to improveEconomic Supplements (CPS ASEC) in 2014 to improve income questions on pension withdrawals and asset income questions on pension withdrawals and asset
income and to improveincome and to improve the accuracy of health insurance coverage estimates.the accuracy of health insurance coverage estimates. This change was This change was ~~partial y~~partially
implementedimplemented with the 2013 data and with the 2013 data and ~~ful y~~fully implemented implemented for the 2014 data. Data for 2013 in the above figure for the 2014 data. Data for 2013 in the above figure
reflect the values from the CPS ASEC samplereflect the values from the CPS ASEC sample that receivedthat received the redesigned income questions. Due to COVID-19, the redesigned income questions. Due to COVID-19,

13 A family ~~is defined in the CPS as a group of two people or more related by birt h~~the nonresponse rate to the 2020 and 2021 CPS ASEC (regarding 2019 and 2020 poverty status) increased 13 A family is defined in the CPS as a group of two people or more related by birth, marriage, or adoption and residing , marriage, or adoption and residing
together. together. ~~Fam ily incom e~~Family income in the CPS is the sum of income for all family members. in the CPS is the sum of income for all family members. ~~T he~~The person’s income is counted as person’s income is counted as
family income if the person is livingfamily income if the person is living alone. alone.
14 Gary V.14 Gary V. Engelhardt and Jonathan Gruber, Engelhardt and Jonathan Gruber, Social Security and the Evolution of Elderly Poverty, National Bureau, National Bureau of of
Economic Research (NBER),Economic Research (NBER), Working Paper no. 10466, May 2004, https://www.nber.org/papers/w10466. Working Paper no. 10466, May 2004, https://www.nber.org/papers/w10466. ~~T he~~The study study
showedshowed that the aged poverty rate declined rapidly as the Socialthat the aged poverty rate declined rapidly as the Social Security program expenditures per capita grewSecurity program expenditures per capita grew quickly quickly
in the 1960s and 1970s and then declined more slowly asin the 1960s and 1970s and then declined more slowly as program growth slowedprogram growth slowed in the 1980s and 1990s. in the 1980s and 1990s.
15 15 ~~T he~~The average remaining life expectancy at age 65 of Americans born in 1975 was 13.7 years for men and average remaining life expectancy at age 65 of Americans born in 1975 was 13.7 years for men and 18.0 years 18.0 years
for women. It has been estimated that those born in for women. It has been estimated that those born in ~~20 19~~2022 will live for an average of will live for an average of 1819.1 years after age 65 for men and .1 years after age 65 for men and
~~20.6~~21.7 years for women. See years for women. See ~~Social~~ Social Security Board of Security Board of ~~T rustees~~Trustees, , The ~~2020~~2022 Annual Report of the Board of Trustees of the
Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, , ~~2020, T able V.A4~~2022, Table V.A5, ,
https://www.ssa.gov/OACThttps://www.ssa.gov/OACT ~~/T R/2020/index~~/TR/2022/lr5a5.html. .html.
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~~the nonresponse to the 2020 CPS ASEC (regarding 2019 poverty status) increased substantial y~~substantially compared to compared to
surveys in priorsurveys in prior ~~years. This nonresponse likely biased income estimates up~~ years. The increase in nonresponses likely biased income estimates up and poverty statistics down. and poverty statistics down.
The poverty rate for individuals aged 65 and older The poverty rate for individuals aged 65 and older ~~historical y~~historically was higher than the rates for adults was higher than the rates for adults
aged 18aged 18 to -64 and children under the age of 18, but today it is the lowest among those three age 64 and children under the age of 18, but today it is the lowest among those three age
groups.16 groups.16 ~~(Se~~e(See Figure 2.) For example: .) For example:
 In 1966, the poverty rate among persons aged 65 and older was 28.5%, compared  In 1966, the poverty rate among persons aged 65 and older was 28.5%, compared
with 10.5% among adults aged 18-64 and 17.6% among children under the age of with 10.5% among adults aged 18-64 and 17.6% among children under the age of
18. 18.
 In 1974, the aged poverty rate  In 1974, the aged poverty rate ~~fel~~ fell below the rate among children under the age of below the rate among children under the age of
18, and by the early 1990s, the aged poverty rate had 18, and by the early 1990s, the aged poverty rate had ~~fal en~~fallen below the rate among below the rate among
adults aged 18-64. The aged poverty rate has adults aged 18-64. The aged poverty rate has generally remained lower than the poverty remained lower than the poverty
rate for adults aged 18-64 since that time. rate for adults aged 18-64 since that time.
 The poverty rate among individuals aged 65 and older was  The poverty rate among individuals aged 65 and older was ~~8.9~~10.3% in % in ~~2019~~2021, which , which
was was ~~lower than the 9.4~~not statistically different from the 10.5% poverty rate among adults aged 18-% poverty rate among adults aged 18-64 but lower than the 15.3% ~~64 and the 14.4%~~
poverty rate among children under 18 years old.17 poverty rate among children under 18 years old.17
Figure 2. Poverty Rates, by Age Group: 1966-~~2019~~
2021 Poverty rates in percentages. Shaded bars indicate recessions. Poverty rates in percentages. Shaded bars indicate recessions.

Source: CRS using data fromCRS using data from U.S. Census Bureau,U.S. Census Bureau, Current ~~Population~~ Population Survey, 1967-~~2020~~2022 Annual Social and
Economic Supplements,, “Historical“Historical Poverty Table 3,” http://www2.census.gov/programs-surveys/cps/tables/time-Poverty Table 3,” http://www2.census.gov/programs-surveys/cps/tables/time-

~~16 See CRS Report R46000~~ 16 See CRS Report R46759, , Poverty in the United States in ~~2018: In Brief~~2019. .
17 17 ~~T he~~The 2014 redesign of the CPS ASEC 2014 redesign of the CPS ASEC improved the income questions on pension withdrawalsimproved the income questions on pension withdrawals and asset and asset ~~inc ome~~income and and
reducedreduced nonresponses. However, some studiesnonresponses. However, some studies of the redesignof the redesign find modest improvements in median incomes and no find modest improvements in median incomes and no
evidence of any change in poverty of the aged population. See Jessicaevidence of any change in poverty of the aged population. See Jessica L. SemegaL. Semega and Edwardand Edward Welniak Jr., Welniak Jr., The Effects
of Changes to the Current Population Survey Annual Social and Economic Supplement on ~~Estim ates of Incom e~~ Estimates of Income, U.S. , U.S.
CensusCensus Bureau,Bureau, January 2015, https://www.census.gov/content/dam/Census/library/working-papers/2015/DEMO/January 2015, https://www.census.gov/content/dam/Census/library/working-papers/2015/DEMO/
ASSA-Income-CPSASEC-Red.pdf;ASSA-Income-CPSASEC-Red.pdf; and Joshuaand Joshua Mitchell and Mitchell and ~~T rudi~~Trudi Renwick, Renwick, A ~~Com parison~~Comparison of Official Poverty
~~Estim ates~~Estimates in the Redesigned Current Population Survey Annual Social and Economic Supplement, U.S. Census, U.S. Census Bureau, Bureau,
January 4, 2015, https://www.census.gov/content/dam/Census/library/working-papers/2014/demo/SEHSD-WP2014-January 4, 2015, https://www.census.gov/content/dam/Census/library/working-papers/2014/demo/SEHSD-WP2014-
35.pdf. 35.pdf.
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series/historical-poverty-people/hstpov3.xls, series/historical-poverty-people/hstpov3.xls, downloaded Novemberdownloaded November ~~2020~~ 2022. Recession dates obtained from NBER, . Recession dates obtained from NBER,
“US Business“US Business Cycle Expansions and Contractions,” http://www.nber.org/cycles/cyclesmain.html. Cycle Expansions and Contractions,” http://www.nber.org/cycles/cyclesmain.html.
Notes: The Census Bureau implemented The Census Bureau implemented a change to the CPS ASEC in 2014 to improvea change to the CPS ASEC in 2014 to improve ~~income~~ income questions on questions on
pension withdrawals and asset incomepension withdrawals and asset income and to improveand to improve the accuracy of health insurance coverage estimates.the accuracy of health insurance coverage estimates. This This
change was change was ~~partial y~~partially implemented implemented with the 2013 data and with the 2013 data and ~~ful y implemented~~ fully implemented for the 2014 data. Data for 2013 in for the 2014 data. Data for 2013 in
the above figure reflect the values fromthe above figure reflect the values from the CPS ASEC samplethe CPS ASEC sample that receivedthat received the redesignedthe redesigned income questions. income questions.
Due to COVID-19, the nonresponseDue to COVID-19, the nonresponse rate to the 2020 to the 2020 and 2021 CPS ASEC (regarding 2019CPS ASEC (regarding 2019 and 2020 poverty status) increased poverty status) increased
~~substantial y~~substantially compared to surveys in prior compared to surveys in prior ~~years. This nonresponse likely biased income estimates~~ years. The increase in nonresponses likely biased income estimates up and up and
poverty statistics down. poverty statistics down.
Poverty Among the Aged by Demographic
Characteristics
Poverty status among the aged population Poverty status among the aged population ~~general y~~generally varies across different demographic groups. varies across different demographic groups.
This section describes the aged population’s poverty status for selected demographic This section describes the aged population’s poverty status for selected demographic
characteristics based on age groups, sex, marital status, and race and Hispanic origin. characteristics based on age groups, sex, marital status, and race and Hispanic origin.
Age
The poverty rate for The poverty rate for al all age groups among the older population age groups among the older population ~~general y~~generally declined in the past four declined in the past four
decades. People aged 80 and older, however, have a higher poverty rate than aged individuals decades. People aged 80 and older, however, have a higher poverty rate than aged individuals
under the age of 80.under the age of 80. Figure 3 displays the percentage of the aged population who were in poverty displays the percentage of the aged population who were in poverty
by age groups from 1975 to by age groups from 1975 to ~~2019~~2021. In 1975, the poverty rate among individuals who were in the . In 1975, the poverty rate among individuals who were in the
oldest age group (80 and older) was 21.5%, compared with 16.4% among those aged 75-79, oldest age group (80 and older) was 21.5%, compared with 16.4% among those aged 75-79,
14.4% among those aged 70-74, and 12.5% among those aged 65-69. Poverty rates declined over 14.4% among those aged 70-74, and 12.5% among those aged 65-69. Poverty rates declined over
the past 40 years, and in the past 40 years, and in ~~2019~~2021, approximately , approximately ~~11.1~~12.9% of people aged 80 and older lived in poverty % of people aged 80 and older lived in poverty
(a (a 10nine percentage point reduction from 1975), but the share was percentage point reduction from 1975), but the share was ~~stil~~ still higher than the 9.higher than the 9.2% 5% poverty poverty
rate among individuals aged 75-79, rate among individuals aged 75-79, ~~7.4~~9.7% among those aged 70-74, and % among those aged 70-74, and ~~8.4~~9.6% among those aged % among those aged
65-69.18 Individuals aged 80 and older might be more vulnerable to income risks because they are 65-69.18 Individuals aged 80 and older might be more vulnerable to income risks because they are
more likely to have lower or no earnings (as they phase out of the labor force),19 more likely to have lower or no earnings (as they phase out of the labor force),19 ~~exhaust existing~~

18 Some legislative proposals have been introduced to increase income for those very old people (e.g., those aged18 Some legislative proposals have been introduced to increase income for those very old people (e.g., those aged 80 80
and older). For example, the Social Securityand older). For example, the Social Security Enhancement and Protection Act of Enhancement and Protection Act of ~~2019~~2021 (H.R. (H.R. ~~5392, 116th~~5050, 117th Congress) Congress)
includedincluded a provision to provide additional benefits to certain very old or long-term Social Security beneficiaries. a provision to provide additional benefits to certain very old or long-term Social Security beneficiaries.
19 In 19 In ~~2019~~2021, about , about 76% of individuals% of individuals ~~aged~~ aged 80 and older had some earnings, 80 and older had some earnings, ~~com pared~~compared with with 2826% of individuals% of individuals ~~aged~~ aged 65-65-
79. In the same year, the median earnings among those with any earnings was79. In the same year, the median earnings among those with any earnings was ~~$24,440~~ $27,000 for individuals aged for individuals aged 80 and 80 and
older, compared with $older, compared with $3540,000 for those aged 65,000 for those aged 65 -79. Data are based-79. Data are based on CRSon CRS analysis of the analysis of the ~~2020~~2022 CPS ASEC. CPS ASEC.
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exhaust existing retirement resources,20 have reduced purchasing power in certain defined benefit pensions,21 and retirement resources,20 have reduced purchasing power in certain defined benefit pensions,21 and
incur higher medical expenses.22incur higher medical expenses.22
Figure 3. Poverty Status of Individuals Aged 65 and Older, by Age Group, 1975-~~2019~~2021
Shaded bars indicate recessions. Shaded bars indicate recessions.

Source: CRS analysis of data fromCRS analysis of data from the CPS ASEC. Recessionthe CPS ASEC. Recession dates obtained from NBER, “US Businessdates obtained from NBER, “US Business Cycle Cycle
Expansions and Contractions,” http://www.nber.org/cycles/cyclesmain.html. Expansions and Contractions,” http://www.nber.org/cycles/cyclesmain.html.
Notes: The Census Bureau implemented The Census Bureau implemented a change to the CPS ASEC in 2014 to improvea change to the CPS ASEC in 2014 to improve ~~income~~ income questions on questions on
pension withdrawals and asset incomepension withdrawals and asset income and to improveand to improve the accuracy of health insurance coverage estimates.the accuracy of health insurance coverage estimates. This This
change was change was ~~partial y~~partially implemented implemented with the 2013 data and with the 2013 data and ~~ful y~~fully implemented implemented for the 2014 data. Data for 2013 in for the 2014 data. Data for 2013 in
the above figure reflect the values fromthe above figure reflect the values from the CPS ASEC samplethe CPS ASEC sample that receivedthat received the redesignedthe redesigned income questions. income questions.
Due to COVID-19, the nonresponseDue to COVID-19, the nonresponse rate to the 2020 to the 2020 and 2021 CPS ASEC (regarding 2019CPS ASEC (regarding 2019 and 2020 poverty status) increased poverty status) increased
~~substantial y~~substantially compared to surveys in prior compared to surveys in prior ~~years. This nonresponse likely biased income estimates~~ years. The increase in nonresponses likely biased income estimates up and up and
poverty statistics down. poverty statistics down.
Women aged 80 and older had the highest poverty rate among older Women aged 80 and older had the highest poverty rate among older ~~women and men in al~~ persons in all age age
groups (groups (seesee Figure 4). In ). In ~~2019~~2021, the poverty rate of women aged 80 and older declined to , the poverty rate of women aged 80 and older declined to ~~13.6~~14.7%, %,
compared with compared with ~~7.6~~10.3% among men in the same age group and % among men in the same age group and ~~9.3~~10.4% among women aged 65-69.% among women aged 65-69.

20 In 2019, about 35% of households headed20 In 2019, about 35% of households headed by those aged 80 and older had some retirement assets, compared with by those aged 80 and older had some retirement assets, compared with
49% of households headed49% of households headed by those aged 65-79. by those aged 65-79. ~~T he~~The median retirement asset level among households with any assets median retirement asset level among households with any assets
waswas $62,000 for households headed$62,000 for households headed by those aged 80 andby those aged 80 and older, compared with $146,000 for households headed by older, compared with $146,000 for households headed by
those agedthose aged 65-79. Data are based65-79. Data are based on CRSon CRS analysis of the 2019 Survey of Consumer Finances, whichanalysis of the 2019 Survey of Consumer Finances, which ~~includes~~ includes the the
followingfollowing tax-advantaged accounts in retirement assets: defined contribution plans and Individualtax-advantaged accounts in retirement assets: defined contribution plans and Individual Retirement Retirement
~~Account s~~Accounts, Profit Sharing Plan, Supplementary Retirement Annuity, Cash Balance Plan, Portable Cash Option Plan, and , Profit Sharing Plan, Supplementary Retirement Annuity, Cash Balance Plan, Portable Cash Option Plan, and
etc. For more information, see Federal Reserve, “etc. For more information, see Federal Reserve, “ Codebook for 2019 Survey of Consumer Finances,” Codebook for 2019 Survey of Consumer Finances,”
https://www.federalreserve.gov/econres/files/codebk2019.txthttps://www.federalreserve.gov/econres/files/codebk2019.txt ; and Federal Reserve, “; and Federal Reserve, “ Macro-Variable Definitions,” Macro-Variable Definitions,”
https://www.federalreserve.gov/econres/files/bulletin.macro.txthttps://www.federalreserve.gov/econres/files/bulletin.macro.txt . .
21 A cost-of-living adjustment to mitigate the effects of inflation is provided in Social 21 A cost-of-living adjustment to mitigate the effects of inflation is provided in Social ~~Security~~ Security but is not provided in but is not provided in
many defined benefit pensions. In defined benefit pensions wheremany defined benefit pensions. In defined benefit pensions where the benefits are not adjustedthe benefits are not adjusted regularly by the cost of regularly by the cost of
living, the purchasing power of periodic benefit payments willliving, the purchasing power of periodic benefit payments will be erodedbe eroded over time. over time.
22 The~~22 T he~~ average amount of personal health care spending was average amount of personal health care spending was $32,903 for individuals aged$32,903 for individuals aged 85 and older in 2014, 85 and older in 2014,
compared with $16,977 for those aged 65-84. See Department of Health and Human Services, Centers for Medicare compared with $16,977 for those aged 65-84. See Department of Health and Human Services, Centers for Medicare
and Medicaidand Medicaid Services,Services, NHE Fact Sheet, , ~~2019, T able~~2020, Table 7, https://www.cms.gov/Research-Statistics-Data-and-Systems/ 7, https://www.cms.gov/Research-Statistics-Data-and-Systems/
Statistics-Statistics-~~T rends~~Trends-and-Reports/NationalHealthExpendData/NHE-Fact-Sheet-and-Reports/NationalHealthExpendData/NHE-Fact-Sheet . .
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Poverty Among the Population Aged 65 and Older

Figure 4. Poverty Status of Individuals Aged 65 and Older in ~~2019~~2021, by
Age Groups and Sex

Source: CRS analysis of data fromCRS analysis of data from ~~the 2020 CPS ASEC.~~
Note: Due to COVID-19, the nonresponse to the 2020 CPS ASEC (regarding 2019 poverty status) increased
~~substantial y compared to surveys in prior years. This nonresponse likely biased income estimates up and~~
~~poverty statistics down.~~
the 2022 CPS ASEC. Poverty status among individuals aged 80 and older varies depending on whether the person is Poverty status among individuals aged 80 and older varies depending on whether the person is
livingliving with other family members or nonrelatives.23 Poverty rates for those living with other with other family members or nonrelatives.23 Poverty rates for those living with other
people in people in ~~2019~~2021 were about half the rates for those living alone. In were about half the rates for those living alone. In ~~2019~~2021, the poverty rate for men , the poverty rate for men
aged 80 and older was aged 80 and older was ~~6.4~~7.9% if they lived with others and % if they lived with others and 1116.2% if they lived alone (.2% if they lived alone (seesee Figure
5). In the same year, the poverty rate for women aged 80 and older was about . In the same year, the poverty rate for women aged 80 and older was about 810.6% if they lived .6% if they lived
with others and with others and ~~18.9~~19.0% if they lived alone. % if they lived alone.

23 Among the aged23 Among the aged population, individualspopulation, individuals younger than age 80 who lived with family members wereyounger than age 80 who lived with family members were more likely to be more likely to be
married and living with spousesmarried and living with spouses than those aged 80 and older. In than those aged 80 and older. In ~~2019~~2021, about , about 8180.8% of individuals.8% of individuals ~~aged 65~~ aged 65-79 who -79 who
lived with other family members or nonrelatives were married and living together with spouses, lived with other family members or nonrelatives were married and living together with spouses, ~~compare d with 69.5~~compared with 67.8% %
of individualsof individuals ~~aged~~ aged 80 and older. Because80 and older. Because of the correlation between living arrangement and marital of the correlation between living arrangement and marital ~~st atus~~status for the for the
population aged 65-79, this report discusses poverty for this age group basedpopulation aged 65-79, this report discusses poverty for this age group based on marital status only. For more on marital status only. For more
information, see the sectioninformation, see the section “ “Marital Status.”
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Figure 5. Poverty Rates of Individuals Aged 80 and Older in ~~2019~~2021, by Living Status

Source: CRS analysis of data fromCRS analysis of data from the the ~~2020~~2022 CPS ASEC. CPS ASEC.
Note: Living with others include those living with family members Living with others include those living with family members or nonrelatives. ~~or nonrelatives. Due to COVID-19, the~~
~~nonresponse to the 2020 CPS ASEC (regarding 2019 poverty status) increased substantial y compared to surveys~~
~~in prior years. This nonresponse likely biased income estimates up and poverty statistics down.~~
Marital Status
Individuals aged 65 and older who were married and living together at the time of the survey Individuals aged 65 and older who were married and living together at the time of the survey
~~general y~~generally had a lower poverty rate than those who were not married, including those widowed, had a lower poverty rate than those who were not married, including those widowed,
divorced, never married, separated, or married but living apart (divorced, never married, separated, or married but living apart (seesee Figure 6).24 In 1975, about 24 In 1975, about
53.0% of individuals aged 65 and older were married and living together, and this percentage was 53.0% of individuals aged 65 and older were married and living together, and this percentage was
slightly higher at 56.slightly higher at 56.84% in % in ~~2019~~2021. Approximately 8.2% of married persons aged 65 and older and . Approximately 8.2% of married persons aged 65 and older and
livingliving together had family incomes below the federal poverty threshold in 1975, and this rate together had family incomes below the federal poverty threshold in 1975, and this rate
declined to declined to ~~4.5~~5.8% in % in ~~2019~~2021. During the same period, the poverty rate among aged nonmarried . During the same period, the poverty rate among aged nonmarried
persons decreased from 23.4% to persons decreased from 23.4% to ~~15.0%.~~

16.2%. 24 In the 2017 CPS ASEC,24 In the 2017 CPS ASEC, the Censusthe Census ~~Bureau added~~ Bureau added separate opposite-sex and same-sex categories for the spouse and separate opposite-sex and same-sex categories for the spouse and
unmarried partner categories. Married-couple families now includeunmarried partner categories. Married-couple families now include same-sex married couples. For details, see Census same-sex married couples. For details, see Census
Bureau,Bureau, “Same-Sex“Same-Sex Couples Working Papers,” https://www.census.gov/topics/families/same-sex-couples/library/Couples Working Papers,” https://www.census.gov/topics/families/same-sex-couples/library/
working-papers.2019.html. For an overview of the effects of the proposed changes on poverty statistics, see Ashley working-papers.2019.html. For an overview of the effects of the proposed changes on poverty statistics, see Ashley
Edwards,Edwards, The Presence and ~~Im pact of Sam e~~Impact of Same-Sex Married Couples on Poverty Rates in the Current Population Survey, ,
CensusCensus Bureau,Bureau, April 27, 2017, https://www.census.gov/content/dam/Census/library/working-papers/2017/demo/April 27, 2017, https://www.census.gov/content/dam/Census/library/working-papers/2017/demo/
SEHSD-WP2017-25.pdf. SEHSD-WP2017-25.pdf.
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Figure 6. Poverty Status of Individuals Aged 65 and Older, by Marital Status,
1975-~~2019~~2021
Shaded bars indicate recessions. Shaded bars indicate recessions.

Source: CRS analysis of data fromCRS analysis of data from the 1976-the 1976-~~2020~~2022 CPS ASEC. Recession CPS ASEC. Recession dates obtained from NBER, “US dates obtained from NBER, “US
BusinessBusiness Cycle Expansions and Contractions,” http://www.nber.org/cycles/cyclesmain.html. Cycle Expansions and Contractions,” http://www.nber.org/cycles/cyclesmain.html.
Notes: Married individuals are those married Married individuals are those married and living together. Nonmarriedand living together. Nonmarried individuals include those individuals include those
widowed, divorced,widowed, divorced, never married,never married, separated,separated, and marriedand married living apart. The Census Bureau implementedliving apart. The Census Bureau implemented a a
change to the CPS ASEC in 2014 to improve incomechange to the CPS ASEC in 2014 to improve income questions on pension withdrawals and asset incomequestions on pension withdrawals and asset income and to and to
improveimprove the accuracy of health insurance coverage estimates.the accuracy of health insurance coverage estimates. This change was This change was ~~partial y~~partially implemented implemented with the with the
2013 data and 2013 data and ~~ful y~~fully implemented implemented for the 2014 data. Data for 2013 in the above figure reflect the values fromfor the 2014 data. Data for 2013 in the above figure reflect the values from the the
CPS ASEC sampleCPS ASEC sample that receivedthat received the redesignedthe redesigned income questions. Due to COVID-19, the nonresponseincome questions. Due to COVID-19, the nonresponse rate to the to the
~~2020~~ 2020 and 2021 CPS ASEC increased CPS ASEC increased ~~substantial y~~substantially compared to surveys in prior years. compared to surveys in prior years. ~~This nonresponse likely~~ The increase in nonresponses likely biased 2019 biased 2019
and 2020 income estimatesincome estimates up and poverty statistics down. up and poverty statistics down.
Figure 7 shows the poverty rate in shows the poverty rate in ~~2019~~2021 by sex and marital status at the survey time. Married by sex and marital status at the survey time. Married
couples generally have significantly lower poverty rates than nonmarried individuals, and couples generally have significantly lower poverty rates than nonmarried individuals, and
widowed and divorced women aged 65 or older are more likely to be in poverty than their male widowed and divorced women aged 65 or older are more likely to be in poverty than their male
counterparts. Among women aged 65 and older, about counterparts. Among women aged 65 and older, about ~~4.7~~5.8% of married women (and living % of married women (and living
~~together with the spouse~~with their spouses) had total incomes below the official poverty threshold in ) had total incomes below the official poverty threshold in ~~2019,~~
2021, compared with compared with ~~14.4~~15.5% of widows, % of widows, ~~15.8~~17.1% of divorced women, and % of divorced women, and ~~16.9~~19.5% of never-married % of never-married
women.25 In contrast with the widowed and divorced men in this age group, who are less likely to women.25 In contrast with the widowed and divorced men in this age group, who are less likely to
be poor than widowed and divorced women, poverty rates are also be poor than widowed and divorced women, poverty rates are also ~~high~~higher among never-married among never-married
men at a rate of 18.men at a rate of 18.67% in % in ~~2019~~2021. .
Older widowed and divorced women have a higher observed poverty rate than their male Older widowed and divorced women have a higher observed poverty rate than their male
counterparts for several reasons.26 First, women on average live longer than men,27 and thus more counterparts for several reasons.26 First, women on average live longer than men,27 and thus more
women are likely to be widowed than are men.28 As a consequence, women may spend more time women are likely to be widowed than are men.28 As a consequence, women may spend more time

25 Recent Congresses25 Recent Congresses have seen legislative proposals to increase Socialhave seen legislative proposals to increase Social Security benefits for certain widow(er)s, Security benefits for certain widow(er)s,
disableddisabled widow(er)s,widow(er)s, and survivingand surviving divorced spouses, suchdivorced spouses, such as H.R. as H.R. ~~2654~~4921, H.R. , H.R. ~~4121~~4851, H.R. , H.R. ~~1540~~3915, and S. , and S. ~~345~~1772 in the in the ~~116th~~
117th Congress. Note the definitions of Congress. Note the definitions of widowed and and divorced in this report are based on marital status, not Social Security in this report are based on marital status, not Social Security
benefit types. benefit types.
26 For more information, see CRS 26 For more information, see CRS Report R41479, Report R41479, Social Security: Revisiting Benefits for Spouses and Survivors; and ; and
CRSCRS Report R46182, Report R46182, Social Security and Vulnerable Groups—Policy Options to Aid Widows..
27 Social 27 Social Security Board of Security Board of ~~T rustees,~~ ~~2020~~Trustees, 2022 Annual Report, , ~~T able V.A4~~Table V.A5. .
28 Madonna Harrington Meyer, Douglas28 Madonna Harrington Meyer, Douglas A. Wolf, and Christine L. Himes, A. Wolf, and Christine L. Himes, Linking Benefits to Marital Status: Race and
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Poverty Among the Population Aged 65 and Older

in retirement and are more vulnerable to inflation and the risk of outliving other assets. The in retirement and are more vulnerable to inflation and the risk of outliving other assets. The
widow may also confront depleted assets from the deceased spouse’s medical or long-term care widow may also confront depleted assets from the deceased spouse’s medical or long-term care
expenses. Second, women enter retirement with fewer retirement resources than men. Women are expenses. Second, women enter retirement with fewer retirement resources than men. Women are
more likely to have taken employment breaks to care for children or parents and thus had a lower more likely to have taken employment breaks to care for children or parents and thus had a lower
labor force participation rate than men.29 Breaks in employment result in fewer years of labor force participation rate than men.29 Breaks in employment result in fewer years of
contributions to Social Security and employer-sponsored pension plans and thus lower retirement contributions to Social Security and employer-sponsored pension plans and thus lower retirement
benefits.30 Moreover, the median earnings of women who are full-time wage and salary workers benefits.30 Moreover, the median earnings of women who are full-time wage and salary workers
are 82% of their male counterparts.31 Because Social Security and private pension benefits are are 82% of their male counterparts.31 Because Social Security and private pension benefits are
linked to earnings, this “earnings gap” can lead to lower benefit amounts for women than for linked to earnings, this “earnings gap” can lead to lower benefit amounts for women than for
men. Lastly, a widow is also at risk of a substantial income reduction after the spouse’s death men. Lastly, a widow is also at risk of a substantial income reduction after the spouse’s death
compared with the couple’s total income prior to the spouse’s death. The widow’s Social Security compared with the couple’s total income prior to the spouse’s death. The widow’s Social Security
benefit may be 33%-50% lower than the combined couple’s Social Security benefit. The deceased benefit may be 33%-50% lower than the combined couple’s Social Security benefit. The deceased
spouse’s pension from work may be lost or cut in half. spouse’s pension from work may be lost or cut in half.
Figure 7. Poverty Status of Individuals Aged 65 and Older in ~~2019~~2021, by Marital Status
and Sex

Source: CRS analysis of data fromCRS analysis of data from the the ~~2020~~2022 CPS ASEC. CPS ASEC.
Notes: Married persons are married Married persons are married and living with their spouses.and living with their spouses. Nonmarried persons may be divorced, Nonmarried persons may be divorced,
widowed, never married,widowed, never married, separated, or marriedseparated, or married but living apart from their spouses. In 2021, roughly 6% of individuals aged 65 and older lived in families with children under 18 years old. Poverty rates among aged men and women varied by the presence of children in the Diminishing~~but living apart from their spouses. Due to COVID-19, the~~
~~nonresponse to the 2020 CPS ASEC increased substantial y compared to surveys in prior years. This~~
~~nonresponse likely biased 2019 income estimates up and poverty statistics down.~~

~~Dim inishing~~ Access to Social Security Spouse and Widow Benefits in the U.S., Center for Retirement Research, March , Center for Retirement Research, March
2004. See also Christopher R. 2004. See also Christopher R. ~~T amborini~~Tamborini, Howard Iams, and Kevin Whitman, “, Howard Iams, and Kevin Whitman, “ Marital History, Race and Social Marital History, Race and Social
Security: SpouseSecurity: Spouse and Widowand Widow Benefit Eligibility in the United States,” Benefit Eligibility in the United States,” Research on Aging, vol. 31, no. 5 (2009), pp. , vol. 31, no. 5 (2009), pp.
577-605. 577-605.
29 Bureau29 Bureau of Labor Statistics, of Labor Statistics, Women in the Labor Force: A Databook, , ~~December 2019, T ables~~March 2022, Tables 1, 5 and 7, 1, 5 and 7,
https://www.bls.gov/opub/https://www.bls.gov/opub/~~report s~~reports/womens-databook//womens-databook/~~2019~~2021/home.htm. /home.htm.
30 In 30 In ~~December 2020~~October 2022, the monthly average Social Security benefits for retired workers were $1,, the monthly average Social Security benefits for retired workers were $1,~~714~~856 for men and $1, for men and $1,~~378~~504
for women. Seefor women. See ~~Social~~ Social Security Administration, the Office of Chief Actuary, “Number of Social SecuritySecurity Administration, the Office of Chief Actuary, “Number of Social Security ~~Recipients at~~
~~the End of Dec 2020,”~~ Recipients,” https://www.ssa.gov/cgi-bin/currentpay.cgi.https://www.ssa.gov/cgi-bin/currentpay.cgi. ~~T he~~ The Employee Benefit Research Institute found that Employee Benefit Research Institute found that
the median balancethe median balance ~~in individual~~ in individual retirement accounts was $38,842 for men and $28,616 for women in 2016retirement accounts was $38,842 for men and $28,616 for women in 2016 . See Craig . See Craig
Copeland, Copeland, Individual ~~Retirem ent~~Retirement Account Balances, Contributions, Withdrawals, and Asset Allocation Longitudinal
Results 2010–2016: The EBRI IRA Database, Employee Benefit Research Institute, October 2018. , Employee Benefit Research Institute, October 2018.
31 Bureau31 Bureau of Labor Statistics, of Labor Statistics, Women in the Labor Force, , ~~T able~~Table 16. 16.
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Poverty Among the Population Aged 65 and Older

~~In 2019, roughly 6% of individuals aged 65 and older lived in families with children under 18~~
~~years old. Poverty rates among aged men and women varied by the presence of children in the~~
~~family (se~~efamily (see Figure 8), although not always in the same direction. , although not always in the same direction. ~~Among~~For example, among married men and married men and
women, a relatively higher share of those with children lived in poverty (women, a relatively higher share of those with children lived in poverty (~~8.7~~9.3% for men and % for men and ~~10.1%~~
8.2% for women) than those without any children (for women) than those without any children (~~4.1~~5.6% for men and % for men and ~~4.4~~5.7% for women). In contrast, % for women). In contrast,
among widowedamong widowed~~, divorced and never-married~~ individuals, those living with children had individuals, those living with children had
relatively lower poverty rates than those not living with children. relatively lower poverty rates than those not living with children.
Figure 8. Poverty Status of Individuals Aged 65 and Older in ~~2019~~2021, by Marital Status,
Sex, and the Presence of Children

Source: CRS analysis of data fromCRS analysis of data from the the ~~2020~~2022 CPS ASEC. CPS ASEC.
Notes: Married persons are married Married persons are married and living with their spouses.and living with their spouses. Children are those under age 18. ~~Children are those under age 18. Due to~~
~~COVID-19, the nonresponse to the 2020 CPS ASEC increased substantial y compared to surveys in prior years.~~
~~This nonresponse likely biased income estimates up and poverty statistics down.~~
Race and Hispanic Origin32
Poverty rates vary by race and Hispanic origin, as shown Poverty rates vary by race and Hispanic origin, as shown inin Figure 9. In In surveys, Hispanic origin surveys, Hispanic origin
is asked separately from race. Accordingly, persons identifying as Hispanic may be of any race.is asked separately from race. Accordingly, persons identifying as Hispanic may be of any race.33
The poverty rate for the aged population has decreased among persons identifying as Black or The poverty rate for the aged population has decreased among persons identifying as Black or
African American alone, non-Hispanic White alone, and Hispanic from 1975 to African American alone, non-Hispanic White alone, and Hispanic from 1975 to ~~2019~~2021. Among . Among
aged African Americans, the poverty rate decreased from 36.3% in 1975 to aged African Americans, the poverty rate decreased from 36.3% in 1975 to ~~18.0~~17.8% in % in ~~2019~~2021; ;
among the aged non-Hispanic White population, from 13.0% to among the aged non-Hispanic White population, from 13.0% to ~~6.8~~8.0%; and among the aged %; and among the aged
Hispanic population, from 32.6% to Hispanic population, from 32.6% to ~~17.1~~18.7%. During the period for which data are available (since %. During the period for which data are available (since

~~32 Since~~ 32 Since 2002, federal surveys have asked respondents to identify with one or more races. Previously they could choose 2002, federal surveys have asked respondents to identify with one or more races. Previously they could choose
only one. only one. ~~T he~~The groups in this section represent those who identified with one race alone. Another approach is to include groups in this section represent those who identified with one race alone. Another approach is to include
those who selected each race group either alone or in combination with one or more other races. those who selected each race group either alone or in combination with one or more other races. ~~T hose~~Those data are also data are also
available in available in ~~Jessica Semega et al.,~~ ~~Incom e and~~ John Creamer et al., Poverty in the United States: ~~2019~~ 2021, Census, Census Bureau,Bureau, September September ~~15, 2020~~13, 2022, ,
https://www.census.gov/https://www.census.gov/~~library/publications/2020/demo/p60-270~~data/tables/2022/demo/income-poverty/p60-277.html, in Appendix B and accompanying historical .html, in Appendix B and accompanying historical
~~data tables.~~
data tables. 33 In this discussion, the only racial group that excludes Hispanics is non-Hispanic White alone. All other categories include Hispanics. Congressional Research Service Congressional Research Service
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Poverty Among the Population Aged 65 and Older

1987), the poverty rate for the aged Asian population ranged between 7.4% and 16.7% with no 1987), the poverty rate for the aged Asian population ranged between 7.4% and 16.7% with no
consistent directional trend.consistent directional trend.33
34 Figure 9. Poverty Status of Individuals Aged 65 and Older, by Race and
Hispanic Origin, 1975-~~2019~~2021
Shaded bars indicate recessions. Shaded bars indicate recessions.

Source: U.S. Census Bureau, U.S. Census Bureau, 1976-~~2020~~2022 CPS ASEC, Historical Poverty Tables: People and Families-1959 to ~~2019~~2021, ,
https://www.census.gov/data/tables/time-series/demo/income-poverty/https://www.census.gov/data/tables/time-series/demo/income-poverty/~~historica l~~historical-poverty-people.html.-poverty-people.html. Recession Recession
dates obtained from NBER, “US Businessdates obtained from NBER, “US Business Cycle Expansions and Contractions,” http://www.nber.org/cycles/Cycle Expansions and Contractions,” http://www.nber.org/cycles/
cyclesmain.html. cyclesmain.html.
Notes: People of Hispanic origin may be of any race. People of Hispanic origin may be of any race. Racial groups shown above include people of Hispanic Racial groups shown above include people of Hispanic
origin unless otherwiseorigin unless otherwise indicated (White alone, not Hispanic).indicated (White alone, not Hispanic). ~~Additional y,~~ Additionally, beginning in 2002, respondents may beginning in 2002, respondents may
identify with one or moreidentify with one or more racial groups. Previouslyracial groups. Previously they could choose only one. Except for “Hispanic,” the they could choose only one. Except for “Hispanic,” the
remaining groups shown include those who identified with one race only. Data for Native remaining groups shown include those who identified with one race only. Data for Native ~~Hawai ans~~Hawaiians and Other and Other
Pacific Islanders,Pacific Islanders, ~~American~~ American Indians and Alaska Natives, and the population of two or moreIndians and Alaska Natives, and the population of two or more races are not shown, races are not shown,
though individuals who identify with one these racial groups (or two or morethough individuals who identify with one these racial groups (or two or more racial groups) may be included in racial groups) may be included in
the share of individuals who identify as Hispanic. Fromthe share of individuals who identify as Hispanic. From 1987 to 2001, however, Pacific Islanders were included in 1987 to 2001, however, Pacific Islanders were included in
the Asian category. The Census Bureau implementedthe Asian category. The Census Bureau implemented a change to the CPS ASEC in 2014 to improvea change to the CPS ASEC in 2014 to improve income income
questions on pension withdrawals and asset income and to improvequestions on pension withdrawals and asset income and to improve the accuracy of health insurance coverage the accuracy of health insurance coverage
estimates.estimates. This change was This change was ~~partial y~~partially implemented implemented with the 2013 data and with the 2013 data and ~~ful y~~fully implemented implemented for the 2014 data. for the 2014 data.
Data for 2013 in the above figure reflect the values from the CPS ASEC sampleData for 2013 in the above figure reflect the values from the CPS ASEC sample that receivedthat received the redesigned the redesigned
income questions. Due to COVID-19, the nonresponse to the 2020 income questions. Due to COVID-19, the nonresponse to the 2020 and 2021 CPS ASEC increasedCPS ASEC increased ~~substantial y~~ substantially compared compared
to surveys in priorto surveys in prior years. This nonresponse likelyyears. This nonresponse likely biased 2019biased 2019 and 2020 income estimates income estimates up and up and poverty statistics down. As shown in Figure 10, among the racial and Hispanic origin groups, in 2021, the poverty rate was lowest among the aged non-Hispanic White population (7.7% for men and 10.3% for women) and highest among the aged Hispanic population (17.3% for men and 19.8% for women). 34 Among the aged American Indian and Alaska Native population (which is smaller than Black, White, and Asian populations), poverty rates typically fluctuate by several percentage points from one year to the next, since smaller populations exhibit greater variability due to sampling. In 2021, the poverty rate among single-race American Indians and Alaska Natives was 19.7%. Over the 1987-2021 period, poverty rates ranged from 13.0% to 28.2% in years that had no methodological changes to the survey. Among the aged identifying with two or more races, 14.2% were below poverty in 2021. Since 2002 (the first year for which data for this group were available), poverty rates have ranged from 7.6% to 14.3% in years without methodological changes to the survey. Congressional Research Service 13 link to page 19 Poverty Among the Population Aged 65 and Older Figure 10. Poverty Status of Individuals Aged 65 and Older in 2021, by Race, Hispanic Origin, and Sex Source: CRS analysis of data from the 2022 CPS ASEC. Notes: People of Hispanic origin may be of any race. Additionally, respondents may identify with one or more racial groups. Except for “Hispanic,” the remaining groups shown include those who identified with one race only. Data for Native Hawaiians and Other Pacific Islanders, American Indians and Alaska Natives, and the population of two or more races are not shown, though individuals who identify with one of these racial groups (or two or more racial groups) may be included in the share of individuals who identify as Hispanic. ~~poverty statistics down.~~

~~33 Margins of error tend to be larger for smaller demographic groups, and the Asian population is smaller than the other~~
~~demographic groups shown. T he larger margins of error help to explain why the line for the Asian population is less~~
~~smooth than for the other demographic groups: T he estimates are affected by sampling variability to a greater degree~~
~~than for the other groups. Estimates for the American Indian and Alaska Native population, the Native Hawaiian and~~
~~Other Pacific Islander population, and the population identifying with two or more races are not sho wn because the~~
~~CPS ASEC sample size is not large enough to produce reliable estimates for these groups. Estimates for poverty rates~~
~~by race and Hispanic origin are also available based on the American Community Survey (ACS), which is conducted~~
~~by the Census Bureau for a much larger sample size. (About 3.5 million addresses are sampled every year.) In 2019, the~~
~~proportion of individuals who lived in poverty was about 7.2% for the aged non -Hispanic White population, 17.6% for~~
~~the aged Black or African American alone population, 12.6% for the aged Asian alone population, 17.7% for the aged~~
~~population identifying as Hispanic or Latino, 16.4% for the aged American Indian and Alaska Native population,~~
~~11.9% for the aged Native Hawaiian and Other Pacific Islander p opulation, and 12.5% for the aged population~~
~~identifying with two or more races. ACS estimates are not available for the period shown in Figure 9 because it is a~~
~~newer survey. For more information about the ACS, see Census Bureau, “American Community Survey,”~~
~~https://www.census.gov/programs-surveys/acs.~~
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~~Poverty Among the Population Aged 65 and Older~~

~~As shown in Figure 10, among the racial and Hispanic origin groups, in 2019, the poverty rate~~
~~was lowest among the aged non-Hispanic White population (5.4% for men and 7.9% for women)~~
~~and highest among the aged Black population (14.9% for men and 20.2% for women).~~
~~Figure 10. Poverty Status of Individuals Aged 65 and Older in 2019, by Race, Hispanic~~
~~Origin, and Sex~~

Source: CRS analysis of data from the 2020 CPS ASEC.
Notes: People of Hispanic origin may be of any race. Additional y, respondents may identify with one or more
~~racial groups. Except for “Hispanic,” the remaining groups shown include those who identified with one race~~
~~only. Data for Native Hawai ans and Other Pacific Islanders, American Indians and Alaska Natives, and the~~
~~population of two or more races are not shown, though individuals who identify with one of these racial groups~~
~~(or two or more racial groups) may be included in the share of individuals who identify as Hispanic. Due to~~
~~COVID-19, the nonresponse to the 2020 CPS ASEC increased substantial y compared to surveys in prior years.~~
~~This nonresponse likely biased 2019 income estimates up and poverty statistics down.~~
Federal Programs for the Aged Poor
Social Security and Supplemental Security Income (SSI) are the two main federal programs that Social Security and Supplemental Security Income (SSI) are the two main federal programs that
provide provide cash benefits to the aged poor. Social Security is a federal social insurance program that benefits to the aged poor. Social Security is a federal social insurance program that
provides benefits to insured workers and their eligible family members, provided the workers provides benefits to insured workers and their eligible family members, provided the workers
worked in jobs covered by Social Security for a sufficient number of years and meet certain other worked in jobs covered by Social Security for a sufficient number of years and meet certain other
criteria.criteria.3435 SSI is a federal assistance program that provides monthly cash benefits to aged, blind, SSI is a federal assistance program that provides monthly cash benefits to aged, blind,
and disabled individuals who have limited income and assets.and disabled individuals who have limited income and assets.~~35 In 2019~~36 In 2021, Social Security , Social Security
accounted for accounted for ~~76.9~~74.3% of total money income among aged individuals whose family incomes were % of total money income among aged individuals whose family incomes were
below 100% of the poverty threshold and 80.below 100% of the poverty threshold and 80.81% among those with family incomes below 125% % among those with family incomes below 125%
of the poverty threshold (of the poverty threshold (seesee Table 1).3637 In the same year, SSI and other cash public assistance In the same year, SSI and other cash public assistance
accounted for 9.accounted for 9.89% of the total money income for aged individuals whose family incomes were % of the total money income for aged individuals whose family incomes were

~~34 See CRS~~ below 100% of the poverty threshold38 and 6.8% for those with family incomes below 125% of the poverty threshold.39 35 See CRS Report R42035, Report R42035, Social Security Primer. .
~~35 See CRS~~ 36 See CRS In FocusIn Focus IF10482, IF10482, Supplemental Security Income (SSI). .
3637 Some studies Some studies find that the CPS ASECfind that the CPS ASEC underreported income from pensions (includingunderreported income from pensions (including retirement saving accounts) retirement saving accounts)
and assets. and assets. ~~T hus~~Thus the share of total money income from Social Security might be overestimated. See Bee and Mitchell, the share of total money income from Social Security might be overestimated. See Bee and Mitchell,
Do Older ~~Am ericans~~Americans Have More ~~Incom e~~Income Than We Think?; and Chen, Munnell, and Sanzenbacher, ; and Chen, Munnell, and Sanzenbacher, How Much ~~Incom e~~Income Do Retirees Actually Have? 38 Based on the reported information in the 2022 CPS ASEC, SSI accounted for 96.5% of total cash public assistance received by individuals aged 65 and older. Other public assistance includes cash public assistance payments to people with low income, such as Temporary Assistance for Needy Families, general assistance, and emergency assistance. 39 Some research has shown that survey respondents at the bottom of the income distribution frequently confuse Social
~~Do Retirees Actually Have?~~
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~~below 100% of the poverty threshold37 and 6.3% for those with family incomes below 125% of~~
~~the poverty threshold.38~~
Table 1. Share of Total Money Income from Specified Sources for Poor Individuals
Aged 65 and Older, ~~2019~~2021
Below 100% of the Poverty
Below 125% of the Poverty

~~Thresholda~~
~~Thresholdb~~Thr esholda Thresholdb
Total Percentage
100.0% 100.0%
100.0% 100.0%
Percentage of Income from—

Earnings Earnings
4. 4.31% %
~~5.4~~3.7% %
Social Security Social Security
~~76.9~~74.3% %
80. 80.81% %
Pensions Pensions
~~4.0%~~
~~2.9~~3.9% 3.4% %
Asset Income Asset Income
~~2.3~~3.4% %
2. 2.14% %
SSI and Other Public Assistance SSI and Other Public Assistance
9. 9.89% %
6. 6.38% %
Other Income Other Income
~~2.6%~~
~~2.5~~4.4% 3.7% %
Number ~~of Observations~~ of Observat ionsc
2, 2,~~404~~
~~3,575~~745 4,016
Population (thousands)
~~4,858~~
~~7,285~~5,804 8,500
Source: CRS analysis of data fromCRS analysis of data from the the ~~2020~~2022 CPS ASEC. CPS ASEC.
Notes: Al All values displayed in the table have been adjusted for population weights provided by the CPS. The values displayed in the table have been adjusted for population weights provided by the CPS. The
CPS ASEC was designed to CPS ASEC was designed to ~~col ect~~ collect information on information on money income receivedreceived on a regular basis. Money income is on a regular basis. Money income is
measuredmeasured on a pre-tax basis and does not includeon a pre-tax basis and does not include noncash benefits and transfers. Earnings are the sum of income noncash benefits and transfers. Earnings are the sum of income
from wages and salariesfrom wages and salaries and net incomeand net income from self-employment.from self-employment. Social Security includes retired-workerSocial Security includes retired-worker benefits, benefits,
dependents’ or survivor benefits, and disability benefits. Pensions include Railroad Retirementdependents’ or survivor benefits, and disability benefits. Pensions include Railroad Retirement income, income,
government employeegovernment employee pensions, and private pensions or annuities. Lump-sum or irregularpensions, and private pensions or annuities. Lump-sum or irregular distributions from distributions from
retirementretirement saving accounts (employer-sponsoredsaving accounts (employer-sponsored defined contribution plans and individual retirementdefined contribution plans and individual retirement accounts) accounts)
may not be properlymay not be properly captured in the survey. Assetcaptured in the survey. Asset income includes income fromincome includes income from interest, dividends, rent, interest, dividends, rent,
royalties,royalties, and estates and trusts. Other public assistance includes cash public assistance payments to people with and estates and trusts. Other public assistance includes cash public assistance payments to people with
low income,low income, such as Temporary Assistancesuch as Temporary Assistance for Needy Families,for Needy Families, general assistance, and emergency assistance. general assistance, and emergency assistance.
Other income includes worker’sOther income includes worker’s compensation, unemploymentcompensation, unemployment insurance, alimony,insurance, alimony, child support, and financial child support, and financial
assistance from friends and relatives. assistance from friends and relatives. ~~Due to COVID-19, the nonresponse to the 2020 CPS ASEC increased~~
~~substantial y compared to surveys in prior years. This nonresponse likely biased income estimates up and~~
~~poverty statistics down.~~
a. The official poverty thresholds in a. The official poverty thresholds in ~~2019~~2021 were $12, were $12,~~261~~996 for single individuals aged 65 and older and $ for single individuals aged 65 and older and $~~15,453~~16,379
for couples aged 65 and older with no children. In larger for couples aged 65 and older with no children. In larger families,families, thresholds are not distinguished by the thresholds are not distinguished by the
householder’shouseholder’s age: Persons 65 and olderage: Persons 65 and older in larger familiesin larger families use the sameuse the same thresholds as young families.thresholds as young families. For For al
all 48 poverty thresholds see Census Bureau, “Poverty Thresholds,” https://www.census.gov/data/tables/time-48 poverty thresholds see Census Bureau, “Poverty Thresholds,” https://www.census.gov/data/tables/time-
series/demo/income-poverty/series/demo/income-poverty/~~historica l~~historical-poverty-thresholds.html.-poverty-thresholds.html.
b. The b. The ~~dol ar~~dollar amounts representing amounts representing 125% of the poverty threshold are the poverty thresholds multiplied by 125% of the poverty threshold are the poverty thresholds multiplied by
1.25. For example, 1.25. For example, ~~in 2019~~ in 2021, for a single, for a single person aged 65 or olderperson aged 65 or older not living in a family,not living in a family, ~~$15,327~~ $16,245 was 125% of was 125% of
the poverty level.the poverty level. More people More people ~~fal~~ fall below 125% of poverty than below 100% of poverty because the income below 125% of poverty than below 100% of poverty because the income
cutoff is higher. cutoff is higher.

~~37 Based on the reported information in the 2020 CPS ASEC, SSI accounted for 96% of total cash public assistance~~
~~received by individuals aged 65 and older. Other public assistance includes cash public assistance payments to people~~
~~with low income, such as T emporary Assistance for Needy Families, general assistance, and emergency assistance.~~
~~38 Some research has shown that survey respondents at the bottom of the income distribution frequently confuse Social~~
~~Security with SSI such that SSI plays a larger role among the low-income aged population than the survey suggests.~~
See Bee and Mitchell, Do Older Am ericans Have More Incom e Than We Think?
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~~Poverty Among the Population Aged 65 and Older~~

c. The number of observations is the number of individuals in the survey who are age 65 or older and below c. The number of observations is the number of individuals in the survey who are age 65 or older and below
the poverty cutoff shown. the poverty cutoff shown.
Social Security is not designed solely for the poor, but benefits are weighted to replace a greater Social Security is not designed solely for the poor, but benefits are weighted to replace a greater
share of career-average earnings for low-paid workers than for high-paid workers. share of career-average earnings for low-paid workers than for high-paid workers.
Social Security benefits alone, however, would not be sufficient to eliminate poverty for a large Social Security benefits alone, however, would not be sufficient to eliminate poverty for a large
number of older Americans. The poverty rate among Social Security beneficiaries aged 65 and number of older Americans. The poverty rate among Social Security beneficiaries aged 65 and
older was older was ~~6.8% in 2019.39~~8.0% in 2021.40 Although the Social Security program contains a special minimum Although the Social Security program contains a special minimum
Security with SSI such that SSI plays a larger role among the low-income aged population than the survey suggests. See Bee and Mitchell, Do Older Americans Have More Income Than We Think? 40 CRS analysis of data from the 2022 CPS ASEC. Congressional Research Service 15 Poverty Among the Population Aged 65 and Older benefit provision that increases benefits to workers who have many years of low earnings and benefit provision that increases benefits to workers who have many years of low earnings and
meet certain other criteria, this provision has meet certain other criteria, this provision has ~~virtual y~~virtually no effect on the benefits paid to today’s no effect on the benefits paid to today’s
new retirees.new retirees.4041 According to the Census Bureau’s analysis, in According to the Census Bureau’s analysis, in ~~2019, 35.8~~2021, 37.7% of the aged population % of the aged population
would live in poverty without Social Security benefits, holding other resources and expenses would live in poverty without Social Security benefits, holding other resources and expenses
constant.constant.41
42 SSI is intended to provide a minimum level of income to adults who have difficulty meeting their SSI is intended to provide a minimum level of income to adults who have difficulty meeting their
basic living expenses due to age or disabilitybasic living expenses due to age or disability and who have little or no Social Security or other and who have little or no Social Security or other
income.income.4243 Some studies show that the SSI program does not provide effective income protection Some studies show that the SSI program does not provide effective income protection
for the oldest Americans. For example, the maximum SSI benefit in for the oldest Americans. For example, the maximum SSI benefit in ~~2019~~2021 was was 7573% of the poverty % of the poverty
threshold for a single person aged 65 and older and threshold for a single person aged 65 and older and 9087% of the poverty threshold for a married % of the poverty threshold for a married
couple aged 65 and older.couple aged 65 and older.4344 Thus, aged SSI recipients may Thus, aged SSI recipients may ~~stil~~ still be impoverished. Furthermore, the be impoverished. Furthermore, the
maximum SSI benefit is more generous for married couples, who are less likely to need maximum SSI benefit is more generous for married couples, who are less likely to need
assistance than are older single individuals.assistance than are older single individuals.

~~39 CRS analysis of data from the 2020 CPS ASEC.~~
~~40 T he~~ The federal government also provides certain noncash benefits to help the aged poor, such as housing subsidies and SNAP benefits.45 Congress funds housing subsidy programs, such as public housing and government subsidies to renters, to help poor and vulnerable populations meet their 41 The special minimum benefit (also known as the special minimum primary insurance amount) is linked to prices, special minimum benefit (also known as the special minimum primary insurance amount) is linked to prices,
whereaswhereas the regular Socialthe regular Social Security benefit is linked to wages.Security benefit is linked to wages. ~~Because wages~~ Because wages generally growgenerally grow faster than prices, faster than prices, ~~t he~~the
special minimum benefit affects fewer beneficiaries every year. special minimum benefit affects fewer beneficiaries every year. ~~T he~~The Social Security Administration estimates that the Social Security Administration estimates that the
provision willprovision will have no effect on workers who attain age 62 in have no effect on workers who attain age 62 in ~~2019~~2022 or later. See CRS or later. See CRS Report R43615, Report R43615, Social Security:
~~Minim um~~ Minimum Benefits. .
~~41 See Census Bureau,~~ 42 See Census Bureau, Impact on Poverty of Alternative Resource Measure by Age: 1981 ~~-2019~~-2021, September , September ~~2020~~2022, ,
https://www.census.gov/data/tables/https://www.census.gov/data/tables/~~2020~~2022/demo/income-poverty/p60-/demo/income-poverty/p60-~~270~~277.html. Social Security benefits are based.html. Social Security benefits are based on a on a
worker’s career-average earnings in Socialworker’s career-average earnings in Social Security–covered employment (i.e., jobs in which the worker’s earnings Security–covered employment (i.e., jobs in which the worker’s earnings
werewere subject to Socialsubject to Social Security payroll taxes). If the Social Security program had been abolished,Security payroll taxes). If the Social Security program had been abolished, people wouldpeople would not not
receive Socialreceive Social ~~Security~~ Security income duringincome during their retirement years, but they wouldtheir retirement years, but they would have also incurred fewer payroll taxes have also incurred fewer payroll taxes
duringduring their working years—which in turn implies that they would have hadtheir working years—which in turn implies that they would have had additional money for other purposes such additional money for other purposes such
as consumption, retirement savings, and investment. as consumption, retirement savings, and investment. ~~T he~~The values presented above do not reflect the effect of reducing values presented above do not reflect the effect of reducing
payroll taxes or other behavioral changes. payroll taxes or other behavioral changes.
~~42 See CRS~~ 43 See CRS In FocusIn Focus IF10482, IF10482, Supplemental Security Income (SSI). In . In ~~2019, the SSI program paid out nearly $55.4~~
~~billion in federal benefits, of which about 20% (or $11.3 billion) was paid to recipients aged 65 or older. See~~ October 2022, SSI provided $4.9 billion in federally administered payments to 7.6 million recipients, including $1.2 billion to 2.3 million seniors aged 65 and older. See Social Social
Security Administration, “Security Administration, “ SSI Monthly Statistics, SSI Monthly Statistics, ~~2019,” T able 6, https://www.ssa.gov/policy/docs/statcomps/~~
~~ssi_monthly/2019/table06.html.~~
~~43 In 2019~~October 2022,” Table 1, SSI Monthly Statistics, October 2022—Table 1 (ssa.gov). 44 In 2021, the monthly maximum federal SSI, the monthly maximum federal SSI payment amount was $payment amount was $~~771~~794 for an eligible for an eligible ~~individual (or $9,252~~ individual (or $9,528 for the for the
year), which wasyear), which was about about 7573% of the poverty threshold for an individual aged% of the poverty threshold for an individual aged 65 and older ($12,65 and older ($12,~~261~~996). In the same year, ). In the same year,
the monthly maximum federal SSIthe monthly maximum federal SSI payment amountpayment amount was $1,was $1,~~157~~191 for an eligible couple (or $ for an eligible couple (or $~~13,884~~14,292 for the year), which for the year), which
waswas about 90% of the poverty threshold for an aged couple with no children ($about 90% of the poverty threshold for an aged couple with no children ($~~15,453).~~ 16,379). For more information, see For more information, see
Center on BudgetCenter on Budget and Policy Priorities, 2014, “Introduction to the and Policy Priorities, 2014, “Introduction to the ~~Supp lemental~~Supplemental Security Income (SSI) Program,” Security Income (SSI) Program,”
https://www.cbpp.org/research/introduction-to-the-supplemental-security-income-ssi-program; and Pamela Herd et al., https://www.cbpp.org/research/introduction-to-the-supplemental-security-income-ssi-program; and Pamela Herd et al.,
“A “A ~~T argeted~~Targeted Minimum Benefit Plan: A New Minimum Benefit Plan: A New Proposal to ReduceProposal to Reduce Poverty Among Older Social SecurityPoverty Among Older Social Security Recipients,” Recipients,”
Russell Sage Foundation Journal of the Social Sciences, vol. 4, no. 1 (February 2018), pp. 74-90, , vol. 4, no. 1 (February 2018), pp. 74-90,
https://www.urban.org/research/publication/targeted-minimum-benefithttps://www.urban.org/research/publication/targeted-minimum-benefit -plan-new-proposal-reduce-poverty-among--plan-new-proposal-reduce-poverty-among-
older-social-security-recipients. older-social-security-recipients.
~~Congressional Research Service~~
16

~~Poverty Among the Population Aged 65 and Older~~

~~The federal government also provides certain noncash benefits to help the aged poor, such as~~
~~housing subsidies and SNAP benefits.44 Congress funds housing subsidy programs, such as public~~
~~housing and government subsidies to renters, to help poor and vulnerable populations meet their~~
~~housing needs.45~~45 Housing subsidies and SNAP benefits are provided to poor individuals of all ages, although the share of the poor population that receives these benefits is usually smaller among individuals aged 65 and older relative to those under age 65. See, for example, April Yanyuan Wu, Why Do So Few Elderly Use Food Stamps?, University of Chicago, Harris School of Public Policy Studies, October 2009, http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.167.6663&rep=rep1&type=pdf. Congressional Research Service 16 Poverty Among the Population Aged 65 and Older housing needs.46 SNAP is designed primarily to increase the food purchasing power of eligible SNAP is designed primarily to increase the food purchasing power of eligible
low-income households to help them buy low-income households to help them buy ~~nutritional y~~nutritionally adequate low-cost foods. adequate low-cost foods.46
~~Additional y,~~ 47 Additionally, the aged population may also receive health care support from federal health the aged population may also receive health care support from federal health
insurance programs, such as Medicare and Medicaid. Medicare is a federal insurance program insurance programs, such as Medicare and Medicaid. Medicare is a federal insurance program
that provides coverage of health care services for qualified beneficiaries, including that provides coverage of health care services for qualified beneficiaries, including ~~virtual y al of~~
virtually all of the population aged 65 and older,the population aged 65 and older,4748 while Medicaid is a joint federal-state program that finances while Medicaid is a joint federal-state program that finances
the delivery of primary and acute medical services, as the delivery of primary and acute medical services, as ~~wel~~ well as long-term services and supports, to as long-term services and supports, to
a diverse low-income population, including children, pregnant women, adults, individuals with a diverse low-income population, including children, pregnant women, adults, individuals with
disabilities, and people aged 65 and older.disabilities, and people aged 65 and older.4849
Individuals aged 65 and older may also receive a Individuals aged 65 and older may also receive a ~~smal~~ small portion of income from some other federal portion of income from some other federal
programs, including refundable tax credits, school meals, Temporary Assistance for Needy programs, including refundable tax credits, school meals, Temporary Assistance for Needy
Families, the Low Income Home Energy Assistance Program, unemployment insurance, workers’ Families, the Low Income Home Energy Assistance Program, unemployment insurance, workers’
compensation, and the Special Supplemental Nutrition Program for Women, Infants and Children compensation, and the Special Supplemental Nutrition Program for Women, Infants and Children
(WIC).(WIC).4950 The official poverty measure is of limited value for analyzing various federal programs’ The official poverty measure is of limited value for analyzing various federal programs’
effects on poverty status among the aged population, but the SPM, discussed in the following effects on poverty status among the aged population, but the SPM, discussed in the following
section, addresses some of those impacts.section, addresses some of those impacts.5051
The Supplemental Poverty Measure (SPM)
The official poverty measure was developed in the 1960s and was established by the Bureau of The official poverty measure was developed in the 1960s and was established by the Bureau of
the Budget (later the Office of Management and Budget) for measuring the official poverty rate in the Budget (later the Office of Management and Budget) for measuring the official poverty rate in
the United States.the United States.5152 Under the official poverty measure, an individual is counted as poor if his or Under the official poverty measure, an individual is counted as poor if his or

~~44 Housing subsidies and SNAP benefits are provided to poor individuals of all ages, although the share of the po or~~
~~population that receives these benefits is usually smaller among individuals aged 65 and older relative to those under~~
~~age 65. See, for example, April Yanyuan Wu, Why Do So Few Elderly Use Food Stam ps? , University of Chicago,~~
~~Harris School of Public Policy Studies, October 2009, http://citeseerx.ist.psu.edu/viewdoc/download?doi=~~
~~10.1.1.167.6663&rep=rep1&type=pdf.~~
~~45 See CRS~~ her family’s pretax money income falls below the poverty threshold. One of the main criticisms of the official poverty measure is that pretax money income excludes the value of government noncash benefits (such as health insurance, SNAP, or housing assistance) provided either 46 See CRS Report RL34591, Report RL34591, Overview of Federal Housing Assistance Programs and Policy. .
~~46 See CRS~~ 47 See CRS Report R42505, Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer on Eligibility and Benefits. .
~~47 See CRS~~ 48 See CRS Report R40425, Report R40425, Medicare Primer. .
~~48 See CRS~~ 49 See CRS In FocusIn Focus IF10322, IF10322, Medicaid Primer. .
4950 For additional information on each program, see CRS For additional information on each program, see CRS Report R43783, Report R43783, School Meals Programs and Other USDA
Child Nutrition ~~Program s: A Prim er; CRS~~ Programs: A Primer; CRS Report R43634, Report R43634, ~~Tem porary~~Temporary Assistance for Needy ~~Fam ilies~~Families (TANF):
Eligibility and Benefit ~~Am ounts~~Amounts in State TANF Cash Assistance ~~Program s~~ Programs; CRS; CRS Report RL31865, Report RL31865, LIHEAP: Program
and Funding; CRS; CRS Report R41777, Report R41777, Antipoverty Effects of ~~Unem ploym ent~~Unemployment Insurance; CRS Video; CRS Video WVB00014, WVB00014,
Introduction to Workers' ~~Com pensation~~ Compensation; and CRS; and CRS Report R44115, Report R44115, A ~~Prim er~~Primer on WIC: The Special ~~Supplem ental~~Supplemental
Nutrition Program ~~for Wom en~~ for Women, Infants, and Children .
~~50 T he~~. 51 The SPM considers SPM considers medical out-of-pocket expenses but does not addressmedical out-of-pocket expenses but does not address the full impact of Medicare or Medicaidthe full impact of Medicare or Medicaid on on
people’s well-beingpeople’s well-being or economic behavior. For a more thorough discussionor economic behavior. For a more thorough discussion of the components included in the SPM and of the components included in the SPM and
the rationale for SPM methodology, see CRSthe rationale for SPM methodology, see CRS Report R45031, Report R45031, The ~~Supplem ental~~Supplemental Poverty Measure: Its Core Concepts,
~~Developm ent~~Development, and Use. .
5152 Census Census Bureau,Bureau, “ “Office of Management and BudgetOffice of Management and Budget (OMB) in Statistical Policy Directive 14 (May 1978)(OMB) in Statistical Policy Directive 14 (May 1978) ,” ,”
https://www.census.gov/topics/income-poverty/poverty/about/history-of-the-poverty-measure/omb-stat-policy-14.html. https://www.census.gov/topics/income-poverty/poverty/about/history-of-the-poverty-measure/omb-stat-policy-14.html.
~~T his~~This directive replaced Circular directive replaced Circular A-46, issuedA-46, issued by the Bureauby the Bureau of the Budgetof the Budget in 1969. For a history of the official poverty in 1969. For a history of the official poverty
measure, see Censusmeasure, see Census Bureau,Bureau, ~~“ T he~~ “The History of the Official Poverty Measure,” https://www.census.gov/topics/income- History of the Official Poverty Measure,” https://www.census.gov/topics/income-
poverty/poverty/about/history-of-the-poverty-measure.html. poverty/poverty/about/history-of-the-poverty-measure.html.
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17 17

Poverty Among the Population Aged 65 and Older

~~her family’s pretax money income fal s below the poverty threshold. One of the main criticisms~~
~~of the official poverty measure is that pretax money income excludes the value of government~~
~~noncash benefits (such as health insurance, SNAP, or housing assistance) provided either~~
~~privately or publicly.52~~privately or publicly.53 It also does not consider taxes paid to federal, state, or local governments It also does not consider taxes paid to federal, state, or local governments
or tax benefits (such as the Earned Income Tax Credit) that families might receive.or tax benefits (such as the Earned Income Tax Credit) that families might receive.5354
The Census Bureau’s SPM was designed to address the official poverty measure’s limitations and The Census Bureau’s SPM was designed to address the official poverty measure’s limitations and
has been published since 2011.has been published since 2011.5455 The SPM poverty thresholds measure a standard of living based The SPM poverty thresholds measure a standard of living based
on expenditures for food, clothing, shelter, and utilities and “a littleon expenditures for food, clothing, shelter, and utilities and “a little more” for other expenses.more” for other expenses.55
56 Its thresholds—dollar amounts related to the level of need for a family—vary by whether the Its thresholds—dollar amounts related to the level of need for a family—vary by whether the
family rents, owns a home with a mortgage, or owns a home without a mortgage (the latter of family rents, owns a home with a mortgage, or owns a home without a mortgage (the latter of
which is more common among the aged population than it is among younger populations), as which is more common among the aged population than it is among younger populations), as ~~wel~~
well as by metropolitan area and state (for nonmetropolitan areas). It computes the amount of as by metropolitan area and state (for nonmetropolitan areas). It computes the amount of
resources available after taxes, includes the values of noncash benefits, and subtracts some resources available after taxes, includes the values of noncash benefits, and subtracts some
expenses (such as work-related expenses and medical out-of-pocket expenses, the latter of which expenses (such as work-related expenses and medical out-of-pocket expenses, the latter of which
tend to be higher among the aged than among younger populations). tend to be higher among the aged than among younger populations).
In In ~~2019~~2021, the most recent data available, the SPM poverty rate for persons aged 65 and older was , the most recent data available, the SPM poverty rate for persons aged 65 and older was
~~12.8%,56~~10.7%,57 compared with compared with ~~8.9~~10.3% using the official poverty measure.% using the official poverty measure.5758 This higher poverty rate This higher poverty rate

52results largely from higher medical out-of-pocket costs among the aged, in spite of lower housing expenses among the aged, who are more likely to have paid off their mortgages. 53 Another criticism of the poverty measure’s use of money income is that income amounts are Another criticism of the poverty measure’s use of money income is that income amounts are ~~under reported~~underreported in in
household surveys. One proposed solution, not discussedhousehold surveys. One proposed solution, not discussed in detail in this report, is to use a consumptionin detail in this report, is to use a consumption -based poverty -based poverty
measure. Somemeasure. Some scholars arguescholars argue that quantifying the value of goodsthat quantifying the value of goods and services people consume provides a clearer and services people consume provides a clearer
picture into their economic well-being and, consequently, their picture into their economic well-being and, consequently, their ~~povert y~~poverty status, because people may have access status, because people may have access to to
credit, savings,credit, savings, or other resources besidesor other resources besides income. However, as with income, survey data on consumption also come income. However, as with income, survey data on consumption also come
with technical challenges, and other scholars have questionedwith technical challenges, and other scholars have questioned ~~consumption~~ consumption-based poverty measurement by comparing -based poverty measurement by comparing
the method’s theoretical strengths and weaknesses. For a discussionthe method’s theoretical strengths and weaknesses. For a discussion of one approach to consumption-based poverty of one approach to consumption-based poverty
measurement, see Bruce D. Meyer and Jamesmeasurement, see Bruce D. Meyer and James X. Sullivan,X. Sullivan, Annual Report on U.S. ~~Consum ption~~Consumption Poverty: 2017 , ,
American Enterprise American Enterprise ~~Inst itute~~Institute, October 31, 2018, https://www.aei.org/wp-content/uploads/2018/11/2017-Consumption-, October 31, 2018, https://www.aei.org/wp-content/uploads/2018/11/2017-Consumption-
Poverty-Report-Meyer-Sullivan-final.pdf. For a comparison of the strengths and weaknessesPoverty-Report-Meyer-Sullivan-final.pdf. For a comparison of the strengths and weaknesses of income-based and of income-based and
consumption-based poverty measures, usingconsumption-based poverty measures, using examples of families in various economic situations, see David S. examples of families in various economic situations, see David S.
Johnson, “Measuring Consumption and Consumption Poverty: Possibilities and Issues,”Johnson, “Measuring Consumption and Consumption Poverty: Possibilities and Issues,” November 18, 2004, November 18, 2004,
http://www.welfareacademy.org/pubs/poverty/Johnson.pdf. For an analysis that presents serious criticisms of http://www.welfareacademy.org/pubs/poverty/Johnson.pdf. For an analysis that presents serious criticisms of
consumption-based poverty measures, see National Academies of Sciences,consumption-based poverty measures, see National Academies of Sciences, Engineering, and Medicine, Engineering, and Medicine, A ~~Roadm ap~~Roadmap to
Reducing Child Poverty (Washington, DC: National Academies (Washington, DC: National Academies Press, 2019), Appendix D, https://doi.org/10.17226/Press, 2019), Appendix D, https://doi.org/10.17226/
25246. 25246.
5354 Constance F. Citro and Robert T Constance F. Citro and Robert T . Michael, eds., . Michael, eds., Measuring Poverty: A New Approach (Washington, DC: National (Washington, DC: National
AcademiesAcademies Press, 1995); Rebecca Blank, “Press, 1995); Rebecca Blank, “ Presidential Address: HowPresidential Address: How to Improve Poverty Measurement in the United to Improve Poverty Measurement in the United
States,” States,” Journal of Policy Analysis and Management, vol. 27, no. 2 (Spring 2008), pp. 233-254; and , vol. 27, no. 2 (Spring 2008), pp. 233-254; and ~~T rudi~~Trudi Renwick Renwick
and Liana Fox, and Liana Fox, The ~~Supplem ental~~Supplemental Poverty Measure: 2015 , Census, Census Bureau,Bureau, September 2016, pp. 60-258. September 2016, pp. 60-258.
~~54 T he~~55 The SPM has been published SPM has been published as a research measure, per the guidanceas a research measure, per the guidance of an interagency technical working group of an interagency technical working group
organized by the Office of Management and Budget.organized by the Office of Management and Budget. As As the working group observed,the working group observed, ~~“ T he~~ “The SPM would SPM would not replace the not replace the
official poverty measure. official poverty measure. ~~T he~~The Working Group has designed Working Group has designed it as an experimental measure that defines thresholds and it as an experimental measure that defines thresholds and
resources in a manner different from the official poverty measure. resources in a manner different from the official poverty measure. ~~T he~~The SPM should be considered SPM should be considered a work in progress, a work in progress,
with the expectation that there will bewith the expectation that there will be improvements to it over time.improvements to it over time. ” See “” See “ Observations from the Interagency Observations from the Interagency
~~T echnical~~Technical Working Group on Developing a Supplemental Poverty Measure,” March 2010, published on the Census Working Group on Developing a Supplemental Poverty Measure,” March 2010, published on the Census
Bureau’sBureau’s ~~website~~ website at https://www.census.gov/content/dam/Census/topics/income/supplemental-poverty-measure/spm-at https://www.census.gov/content/dam/Census/topics/income/supplemental-poverty-measure/spm-
twgobservations.pdf. twgobservations.pdf.
~~55 See CRS~~ 56 See CRS Report R45031, Report R45031, The Supplemental Poverty Measure: Its Core Concepts, Development, and Use. .
~~56 Liana Fox, The Supplemental Poverty Measure: 2019, Census Bureau, September 2020, https://www.census.gov/~~
~~library/publications/2020/demo/p60-272.html.~~
~~57 T he~~57 Creamer et al., Poverty in the United States: 2021. 58 The SPM poverty rate for persons aged 18-64 was SPM poverty rate for persons aged 18-64 was ~~11.2~~ 7.9% in % in ~~2019~~2021, compared with an official poverty rate of , compared with an official poverty rate of ~~9.4~~10.5% in % in
the same year. the same year. ~~Liana Fox, The Supplem ental Poverty Measure: 2019 .~~
Creamer et al., Poverty in the United States: 2021. Congressional Research Service Congressional Research Service
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link to page 24 link to page 24 Poverty Among the Population Aged 65 and Older

~~results largely from higher medical out-of-pocket costs among the aged, in spite of lower housing~~
~~expenses among the aged, who are more likely to have paid off their mortgages.~~
Income Sources’ Impact on Poverty of the Aged per the SPM
The data presented iThe data presented in Figure 11 ~~il ustrate~~illustrate how changing the definition of the SPM to exclude a how changing the definition of the SPM to exclude a
particular resource or expenditure can affect the SPM poverty rate among the aged population. particular resource or expenditure can affect the SPM poverty rate among the aged population.
The data do not consider the behavioral effects that may occur if the resource or cost were to be The data do not consider the behavioral effects that may occur if the resource or cost were to be
eliminated in reality. eliminated in reality.
Social Security has the greatest effect, by far, on the poverty status of the aged population. Social Security has the greatest effect, by far, on the poverty status of the aged population.
Removing Social Security as a resource while holding the other resources and expenditures Removing Social Security as a resource while holding the other resources and expenditures
constant would increase the SPM aged poverty rate by about 32.constant would increase the SPM aged poverty rate by about 32.12 percentage points. Among the percentage points. Among the
other resources, housing subsidies, SSI, and SNAP had the next largest impacts on the SPM other resources, housing subsidies, SSI, and SNAP had the next largest impacts on the SPM
poverty rate but were a full order of magnitude poverty rate but were a full order of magnitude ~~smal er~~smaller (around a single percentage point instead (around a single percentage point instead
of tens of percentage points). The remaining resources affected the SPM poverty rate by much of tens of percentage points). The remaining resources affected the SPM poverty rate by much
less than one percentage point. Three of the resources shown are related to child rearing (child less than one percentage point. Three of the resources shown are related to child rearing (child
support, school lunch, and WIC), and tax credits are often targeted to families with children. support, school lunch, and WIC), and tax credits are often targeted to families with children.
Households headed by people aged 65 and older are less likelyHouseholds headed by people aged 65 and older are less likely than nonelderly households to than nonelderly households to
have children present in the family.have children present in the family.5859
Among the expenses considered in the SPM but not considered in the official measure, medical Among the expenses considered in the SPM but not considered in the official measure, medical
out-of-pocket costs had the largest effect: Deducting those costs from family income raised the out-of-pocket costs had the largest effect: Deducting those costs from family income raised the
SPM poverty rate by SPM poverty rate by ~~4.0~~2.8 percentage points. Given that the aged population tends to have greater percentage points. Given that the aged population tends to have greater
medical need and higher out-of-pocket health care costs than do younger populations,medical need and higher out-of-pocket health care costs than do younger populations,5960 it is it is
perhaps not surprising that medical costs had a larger effect than the other costs shown in the perhaps not surprising that medical costs had a larger effect than the other costs shown in the
figure. The remaining costs were largely related to work, and, congruent with the aged figure. The remaining costs were largely related to work, and, congruent with the aged
population’s lower likelihoodpopulation’s lower likelihood to be working compared with younger populations,to be working compared with younger populations,6061 these costs these costs
affected the aged population’s SPM poverty rate by less than one percentage point. affected the aged population’s SPM poverty rate by less than one percentage point.

~~58 In 2019~~ 59 In 2020, the average number of children per family was, the average number of children per family was 0.14 children among all households headed0.14 children among all households headed by people aged by people aged
65 and older and 0.65 and older and 0.3334 children among poor households headed by those aged children among poor households headed by those aged 65 and older. 65 and older. ~~T he~~The corresponding averages corresponding averages
for all households and poor households headedfor all households and poor households headed by those agedby those aged 25 25-34 were 1.-34 were 1.3133 and 2. and 2.1321 children, respectively. children, respectively. ~~T he~~The
corresponding averages for all householdscorresponding averages for all households and poor households headed by those agedand poor households headed by those aged 35 35-44 were 1.-44 were 1.7574 and 2. and 2.3230
children, respectively. Seechildren, respectively. See ~~Census Bureau, “~~ Census Bureau, “Mean Number of Related ChildrenMean Number of Related Children per Family, by Family Structure, Age per Family, by Family Structure, Age
of Householder andof Householder and Poverty Status: Poverty Status: ~~2019~~2020,” https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-,” https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-
pov/pov-33pov/pov-33~~.2019~~.html. .html.
5960 Greater health care utilization among the population aged 65 and older, Greater health care utilization among the population aged 65 and older, ~~com pared~~compared with younger populations, is with younger populations, is
documented among several metrics in National Center for Health Statistics, documented among several metrics in National Center for Health Statistics, Health, United States, 2019, ,
https://www.cdc.gov/nchs/data/hus/hus19-508.pdfhttps://www.cdc.gov/nchs/data/hus/hus19-508.pdf. Also, see more information at U.S. Centers for Medicare and Also, see more information at U.S. Centers for Medicare and
MedicaidMedicaid Services,Services, “NHE Fact Sheet,” 2020, https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-“NHE Fact Sheet,” 2020, https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-
~~T rends~~Trends-and-Reports/NationalHealthExpendData/NHE-Fact-Sheet. -and-Reports/NationalHealthExpendData/NHE-Fact-Sheet.
~~60 In 2019~~61 In 2020, nonworkers outnumbered workers among people aged, nonworkers outnumbered workers among people aged 65 and older by a factor of more than three (65 and older by a factor of more than three (~~41.9~~43.3
million compared with 12.million compared with 12.75 million). Among people aged million). Among people aged 18-64, the ratio was reversed (18-64, the ratio was reversed (~~154.6~~152.2 million workers million workers
compared with compared with ~~42.9~~45.3 million nonworkers). See Census million nonworkers). See Census Bureau,Bureau, “ “Work Experience During Year by Age, Sex,Work Experience During Year by Age, Sex, Household Household
Relationship and Poverty Status for People 16 Years Old and Over: Relationship and Poverty Status for People 16 Years Old and Over: ~~2019~~2020,” https://www.census.gov/data/tables/time-,” https://www.census.gov/data/tables/time-
series/demo/income-poverty/cps-pov/pov-22.html. series/demo/income-poverty/cps-pov/pov-22.html.
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Poverty Among the Population Aged 65 and Older

Figure 11. Effects of Resources and Costs on the SPM Poverty Rate for the
Population Aged 65 and Older: ~~2019~~2021
Poverty rates (in percentages) that would result if the SPM were computed without including the element Poverty rates (in percentages) that would result if the SPM were computed without including the element
labeled at left. Each element’s numerical contribution to the SPM poverty rate is shown without labeled at left. Each element’s numerical contribution to the SPM poverty rate is shown without
considering any behavioral changes that may result from its removal as an actual cost or resource. considering any behavioral changes that may result from its removal as an actual cost or resource.

Source: CRS, using data from CRS, using data from Liana Fox, The Supplemental Poverty Measure: 2019John Creamer et al., Poverty in the United States: 2021, Census Bureau, September , Census Bureau, September
~~2020, Table 6, “Effect of Individual Elements on SPM Rates: 2018 and 2019,” https://www.census.gov/library/~~
~~publications/2020/demo/p60-272~~13, 2022, Table B-7, https://www.census.gov/data/tables/2022/demo/income-poverty/p60-277.html. .html.
Notes: The SPM poverty rate for the aged population (65 and older) was The SPM poverty rate for the aged population (65 and older) was ~~12.76% in 2019~~10.68% in 2021. .
SPM = Supplemental Poverty Measure. SPM = Supplemental Poverty Measure.
SSI = Supplemental Security Income. SSI = Supplemental Security Income.
SNAP = Supplemental Nutrition AssistanceSNAP = Supplemental Nutrition Assistance ~~Program.~~
~~LIHEAP = Low-Income Home Energy Assistance~~ Program. Program.
TANF = TemporaryTANF = Temporary Assistance for Needy Families. Assistance for Needy Families.
FICA = FederalFICA = Federal Insurance Contributions Act Insurance Contributions Act ~~payrol tax.~~
payroll tax. Congressional Research Service 20 Poverty Among the Population Aged 65 and Older Additional Considerations
Poverty Not Measured for Certain Populations
~~Approximately 1.2 mil ion persons~~As of 2016, approximately 1.2 million persons living in nursing homes in nursing homes ~~are~~were aged 65 or older. aged 65 or older.61 62 Poverty status is not Poverty status is not
measured for the institutionalized population, which includes persons in nursing homes or prisons measured for the institutionalized population, which includes persons in nursing homes or prisons
or military personnel living on base. This exclusion is not trivial or military personnel living on base. This exclusion is not trivial considering that the population in nursing homes is about one-fifth as large as the 5.8 million ~~considering that the population~~

~~61 According to the National Center for Health Statistics, an estimated 1.4 million persons resided in nursing homes in~~
~~2016. Of this number, almost 1.2 million (83%) were aged 65 or older. See National Center for Health Statistics,~~ ~~Vital~~
~~and Health Statistics, February 2019, T able 9, https://www.cdc.gov/nchs/data/series/sr_03/sr03_43-508.pdf. For a~~
~~thorough discussion of poverty measurement, see CRS Report R44780, An Introduction to Poverty Measurem ent.~~
~~Congressional Research Service~~
20

~~Poverty Among the Population Aged 65 and Older~~

~~in nursing homes is about one-fourth as large as the 4.9 mil ion persons aged 65 or older who~~
persons aged 65 or older who were in poverty in were in poverty in ~~2019.62~~
2021.63 Health Status Not Directly Included in Poverty Measures
Poverty is used as a measure of Poverty is used as a measure of ~~wel~~ well-being, but it measures only economic -being, but it measures only economic ~~wel~~ well-being and does -being and does
not directly include a person’s health status. Health status may influence the amount and types of not directly include a person’s health status. Health status may influence the amount and types of
income a person receives (by affecting, for example, ability to work or receive disability benefits) income a person receives (by affecting, for example, ability to work or receive disability benefits)
and is thus considered indirectly.and is thus considered indirectly.6364 However, the noneconomic aspect of However, the noneconomic aspect of ~~wel~~ well-being that comes -being that comes
from good health is not considered in the poverty measures discussed in this report. Furthermore, from good health is not considered in the poverty measures discussed in this report. Furthermore,
in the SPM, medical out-of-pocket expenses are considered, but the in the SPM, medical out-of-pocket expenses are considered, but the ~~overal~~ overall value of health value of health
insurance programs to the individual, which may insurance programs to the individual, which may ~~wel~~ well exceed out-of-pocket costs for medical care exceed out-of-pocket costs for medical care
or insurance premiums, is not. Considering that Medicaid is an important vehicle for long-term or insurance premiums, is not. Considering that Medicaid is an important vehicle for long-term
care, the benefits Medicaid provides to the aged population could be characterized as care, the benefits Medicaid provides to the aged population could be characterized as ~~fulfil ing~~
fulfilling needs that are not solely medical in nature but have economic value as needs that are not solely medical in nature but have economic value as ~~wel~~ well. .

Author Information

Zhe Li Zhe Li
Joseph Dalaker Joseph Dalaker
Analyst in Social Policy Analyst in Social Policy
Analyst in Social Policy Analyst in Social Policy

~~Disclaimer~~
~~This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan~~
~~shared staff to congressional committees and Members of Congress. It operates solely at the behest of and~~
~~under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other~~
~~than public understanding of information that has been provided by CRS to Members of Congress in~~
~~connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not~~
~~subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in~~
~~its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or~~
~~material from a third party, you may need to obtain the permission of the copyright holder if you wish to~~
~~copy or otherwise use copyrighted material.~~

62 62 According to the National Center for Health Statistics, an estimated 1.4 million persons resided in nursing homes in 2016. Of this number, almost 1.2 million (83%) were aged 65 or older. See National Center for Health Statistics, Vital and Health Statistics, February 2019, Table 9, https://www.cdc.gov/nchs/data/series/sr_03/sr03_43-508.pdf. For a thorough discussion of poverty measurement, see CRS Report R44780, An Introduction to Poverty Measurement. 63 According to a 2010 analysis, at least four-fifths of the aged population lack sufficient personal resources to live in a According to a 2010 analysis, at least four-fifths of the aged population lack sufficient personal resources to live in a
nursingnursing home for more than three years, and almost twohome for more than three years, and almost two -thirds cannot afford one year. Gretchen Engquist, Cyndy -thirds cannot afford one year. Gretchen Engquist, Cyndy
Johnson, and William Courtland Johnson, Johnson, and William Courtland Johnson, ~~System s~~Systems of Care: ~~Environm ental~~Environmental Scan of Medicaid -Funded Long-Term
Supports and Services, Center for Health Care Strategies, May 2010, cited in Loraine A. West et al., , Center for Health Care Strategies, May 2010, cited in Loraine A. West et al., 65+ in the United
States: 2010, Census, Census Bureau,Bureau, June 2014, p. 51. For further information on how long-term care is financed, see CRSJune 2014, p. 51. For further information on how long-term care is financed, see CRS In In
FocusFocus IF10343, IF10343, Who Pays for Long-Term Services and Supports?
63 64 According to a Kaiser According to a Kaiser Family Family ~~Foundat ion~~Foundation analysis of the aged population, those reporting “fair” or “poor” health analysis of the aged population, those reporting “fair” or “poor” health
have a poverty rate more than twice as high as the agedhave a poverty rate more than twice as high as the aged reporting “excellent” or “very good” health under both the reporting “excellent” or “very good” health under both the
official poverty measure and the SPM. Juliette Cubanskiofficial poverty measure and the SPM. Juliette Cubanski et al., et al., How Many Seniors Live in Poverty?, Kaiser Family , Kaiser Family
Foundation, November 19, 2018, https://www.kff.org/reportFoundation, November 19, 2018, https://www.kff.org/report ~~-section/how-many-seniors-live-in-poverty-issue-brief/.~~
~~Congressional Research Service~~
~~R45791 · VERSION 5 · UPDATED~~
21-section/how-many-seniors-live-in-poverty-issue-brief/. Congressional Research Service 21 Poverty Among the Population Aged 65 and Older Disclaimer This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material. Congressional Research Service R45791 · VERSION 7 · UPDATED 22