There’s a contradiction at the heart of retirement in America today: older generations hold more wealth than any before them, yet poverty among seniors is climbing.
A new AARP Foundation analysis of U.S. Census data found that roughly 10 million Americans aged 65 and older lived in poverty in 2025 under the Supplemental Poverty Measure — a 15.4% rate, the highest of any age group. That’s happening at the same time seniors collectively hold trillions of dollars in housing wealth.
How can both be true? The answer comes down to a phrase experts use often: house-rich, cash-poor.
Much of the headline “senior wealth” is concentrated among a small group of high-net-worth households. And even for everyday homeowners, home equity is illiquid — it can’t cover groceries, utilities, or medical bills unless the home is sold or borrowed against. As one economist in the report put it, many seniors end up “house-rich and cash-poor.”
The pressure is intensifying
According to the report:
- Property taxes rose 31% and homeowners insurance premiums jumped 72% between 2019 and 2025.
- Over half (53%) of older adults living alone couldn’t cover basic expenses in 2025.
- More than 40% of households that started retirement with six figures in assets ultimately had to tap their home equity — most of whom never planned to.
The lesson: liquidity and concentration risk
When too much of a retirement picture is tied up in a single, hard-to-access asset, rising costs can expose the gap quickly.
It’s a reminder many investors take to heart: diversification — spreading wealth across different asset classes, including tangible ones — is about having options when circumstances change. For those exploring how physical precious metals can play a role in a diversified retirement strategy, our Specialists are available to walk through the considerations.
Read the full Realtor.com report →
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Book a Free Strategy CallAmerican Alternative Assets is a precious-metals dealer and does not provide investment, legal, tax, or retirement advice. Decisions regarding the purchase or sale of precious metals are solely the customer’s responsibility and should be made based on the customer’s own research and judgment. Source: Realtor.com, “10 Million Seniors Live in Poverty—Even as They Hold Trillions in Housing Wealth.”
