The federal government spends significantly more on retirees than any other age group in the United States, a sign of the breadth of Social Security and Medicare — and Americans’ determination to keep those programs going.
Americans age 65 and older — generally part of the baby-boom generation or Silent Generation — received an estimated $2.7 trillion in federal outlays last year, six times more than the $449 billion for Americans under 26 years old. That ratio is only expected to grow as the population ages.
Working age adults, or those ages 26 to 64, received an estimated $1.2 trillion, according to an analysis published Wednesday by Penn Wharton Budget Model. The analysis estimates how many federal dollars went to different age groups during the last fiscal year by examining government spending.
The vast majority of the money going to retirees came from Social Security and Medicare, key social safety net programs that are widely supported in the U.S. Nearly 80 percent of Americans surveyed by Pew Research in 2024 said Social Security benefits should not be reduced in any way.
Despite their popularity, budgeting for both Social Security and Medicare has been a struggle in the past several years as the programs face financial shortfalls, as the population ages, meaning there are more people for the benefits to reach.
Americans pay into Social Security heavily during their working lives, with the assumed guarantee they will later get funds to support them during retirement. The average American voter is about 50 years old, and therefore approaching the age they would benefit from the Social Security program they’ve been paying into for decades.
“It’s actually driven by biology,” said Kent Smetters, faculty director of Penn Wharton Budget Model. “They know they’re going to be older, they’re not going to be younger.”
Politicians broadly support the programs, knowing how popular they are with voters.
Smetters’s analysis examined all $7 trillion in federal spending during the 2025 fiscal year, and determined that $4.4 trillion of that could be attributed to a specific age group. The rest, including defense spending, debt interest and transportation, was categorized as benefiting all ages.
Of the $4.4 trillion that could be assigned to specific age groups, Penn Wharton Budget Model found that nearly two-thirds goes to retirees. Americans age 65 or older make up less than 20 percent of the country’s total population.
Considered per capita, the ratio between generations only grows. Retirees received the equivalent of about $43,700 per person — 10 times the amount that children and young adults received, at about $4,300 per person. Working age adults received about $7,300 per capita, according to Penn Wharton’s analysis.
Working age adults come in second place, receiving billions of dollars for programs benefiting veterans, health care and disability benefits.
Medicaid was the single biggest contributor to millennials and Gen Xers, and Social Security also gave a substantial amount through disability and survivor benefits.
For children and young adults, Penn Wharton found that Medicaid was the largest spender, followed by the Supplemental Nutrition Assistance Program (SNAP). Health care subsidies also added to the total, as well as education programs.
The analysis looks specifically at federal spending. Education support, which often benefits young adults, is often funded significantly at the state and local level.
The gap between federal spending on retirees vs. children is only expected to grow as the population ages.
Social Security and Medicare’s trust funds are expected to run out of money in less than a decade, according to a federal report releasedlast year. If the trust funds dry up, retirees will still receive benefits as long as workers are paying the payroll taxes — but the amount would drop.
But that scenario would be so unpopular, that many experts expect that Congress will act to fund the programs before it happens.
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