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"are impoverished" is a correct and usable phrase in written English.
You can use it when referring to people who lack adequate resources or wealth. For example, "Millions of families around the world are impoverished and unable to meet basic needs."
Dictionary
are impoverished
adjective
Reduced to poverty.
Exact(60)
By contrast Sri Lanka are impoverished.
Our urban lives are impoverished in their absence.
Without culture, we are impoverished; it makes one despair.
It is running out of water and oil, and 43 percent of its people are impoverished.
Most Alawites are impoverished and as oppressed as the rest of the population.
Utterly dependent on rainfall for irrigation, the villagers are impoverished and insecure.
He added, "They end up encountering people that are impoverished and envious, and they're a target".
Worldwide, 100 million people each year are impoverished by paying for health care, the report said.
In general, the Shiites are impoverished, discriminated against and sometimes brutally repressed.
Every time a language dies, our collective experience and collective culture are impoverished a little more.
One out of 3 residents is in poverty; more than half of all children in the city are impoverished.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com