U.S. household income reached record high in 2025 as poverty fell, but older adults faced worsening hardship

Real median U.S. household income rose 2.6% to a record $87,460 in 2025, while the official poverty rate declined for a second consecutive year to 10.2%, according to Census Bureau data. About 34.5 million people lived in poverty, and the child poverty rate fell to a record-low 13.4%.

The Census Bureau’s supplemental poverty measure, which accounts for taxes, government benefits and expenses including medical costs, stood at 13.1%. Medical expenses pushed an additional 7.7 million people below that threshold, while Social Security kept nearly 29 million out of poverty.

Income remained relatively flat for the bottom 10% of earners but increased 1.7% for the top 10%. An AARP Foundation analysis found that supplemental poverty among people 65 and older rose for a fifth straight year, reaching 15.4%, including nearly 17% among women. One in eight adults ages 50 to 64 was also living in poverty.

A summer AARP Foundation survey found that nearly one-third of low-income older adults ran out of food before they had money to buy more, while one-third lacked enough savings to cover a $100 emergency expense.

Following a Federal Reserve rate increase, experts told CNBC that higher rates would raise costs for variable-rate debt, including credit cards, home-equity lines and adjustable-rate mortgages. Americans collectively carry about $1.26 trillion in credit-card debt, with borrowers who revolve balances paying more than 23% annually on average.