Americans ages 65 and older received $2.7 trillion in federal spending in fiscal year 2025 — about six times more than children and young adults — according to an April 1 analysis from the University of Pennsylvania’s Penn Wharton Budget Model.
Five things to know:
1. Federal outlays totaled about $7 trillion in fiscal year 2025 across 52 spending categories. Of that, $4.4 trillion was assigned to three age groups — retirees (65 and older), working-age adults (26–64) and children and young adults (under 26) — while the remaining $2.6 trillion was classified as benefiting all ages.
2. Retirees received $2.7 trillion, or 61.9% of age-assignable spending (and 38.6% of total outlays), driven primarily by Social Security and Medicare.
3. Working-age adults received $1.2 trillion, or 27.9% of the age-assignable outlays, spread across Medicaid, Social Security disability benefits, veterans benefits and Marketplace subsidies.
4. Americans younger than 26 received $449 billion, or 10.3% of the age-assignable total, including spending on Medicaid, SNAP, child nutrition and education programs.
5. Social Security ($1.3 trillion) and Medicare ($835 billion) account for about 80% of spending for older Americans, followed by federal employee retirement benefits, housing assistance, Medicaid long-term-care spending and VA medical care.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
