Safety Net Programs Don’t Keep Up with Older Adults’ Actual Costs of Living
The cost of living independently in later life has risen steadily across the United States, while many safety net programs intended to help older adults meet basic needs have not kept pace. Programs that support healthcare, nutrition, and income are typically limited to people with very low incomes—often far below what it actually costs to live independently. As a result, many older adults fall into a growing gap: earning too much to qualify for assistance but not enough to cover essential expenses like housing, healthcare, food, and transportation.
March 17, 2026
The infographic below illustrates how the income eligibility limits for several major safety net programs compare with the actual cost of living for older adults. While these programs provide critical support for those with the lowest incomes, many older adults who are struggling financially fall outside eligibility thresholds and are unable to access assistance.
Key Takeaways
• The cost of living independently in later life has steadily increased over the past decade. 86% of adults are concerned about healthcare costs as they age, and 70% of adults are concerned about their financial security in later life.
• Safety net programs designed to help older adults meet basic needs—including healthcare, nutrition, and income assistance—are generally limited to individuals with very low incomes, often far below what is required to live independently.
• Because eligibility thresholds are set well below the actual cost of living, many older adults fall into a gap where they earn too much to qualify for assistance but not enough to afford essential expenses.
• More than one-third of adults age 65 and older—nearly 10 million people—had incomes between $15,000 and $35,000 in 2024, placing many in this financial gray area.
About the Data
The infographic uses data from the Elder Index, which estimates the income older adults need to live independently and meet essential living expenses, including housing, healthcare, food, and transportation. The Elder Index produces estimates based on household composition, housing status (homeowners with and without mortgages and renters), and health status. The figures used in this infographic reflect estimated living costs for adults age 65 and older who live alone and are in good health.
Public safety net programs such as Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and Supplemental Security Income (SSI) can help older adults cover some of these expenses, but only if their income falls below program eligibility limits.
For example:
• SSI generally provides income assistance to single older or disabled adults with annual income below $11,856 (2026).i
• Medicaid generally provides health coverage for single older adults with annual income below $12,276 (2025).ii
• SNAP generally provides food assistance for single adults with annual income below $19,584 (2026). iii
Because these eligibility thresholds are far lower than the estimated cost of living, many older adults who are struggling to meet basic expenses do not qualify for assistance. In 2024, more than one-third of adults age 65 and older—nearly 10 million people—had incomes between $15,000 and $35,000, placing many in this gap.
Sources:
KFF, Medicaid Eligibility Levels for Older Adults and People with Disabilities (Non-MAGI) in 2025
U.S. Department of Agriculture, Food and Nutrition Service, SNAP Special Rules for the Elderly or Disabled
U.S. Census Bureau, Current Population Survey, 2025 Annual Social and Economic Supplement (CPS ASEC), Person Income in 2024.
i Based on SSI income limit of $988 per month from non-work sources, like unemployment or pensions, for an individual. See https://www.ssa.gov/ssi/eligibility
ii Medicaid income limits vary by state. People who receive SSI are generally eligible for Medicaid. In addition, poverty level coverage is available in 28 states, allowing low-income older adults and people with disabilities in those states to qualify for Medicaid when their income exceeds the SSI limits. Income limit is based on the state median monthly income limit of $1,023 for an individual as reported by KFF in Appendix Table 5: Medicaid Eligibility for SSI Enrollees and Optional Older Adults & People with Disabilities Up To 100% FPL as of March 2025 in the report Medicaid Eligibility Levels for Older Adults and People with Disabilities (Non-MAGI) in 2025. See https://www.kff.org/report-section/medicaid-eligibility-levels-for-older-adults-and-people-with-disabilities-non-magi-in-2025-appendix/)
iii Based on gross monthly income limit of $1,696 per month for individuals in the 48 contiguous states, the District of Columbia, Guam, and the U.S. Virgin Islands that apply for SNAP between Oct. 1, 2025, through Sept. 30, 2026. Income limits are higher in Alaska and Hawaii. See https://www.fns.usda.gov/snap/eligibility/elderly-disabled-special-rules