A projected 3.6% Social Security cost-of-living adjustment (COLA) for 2027, averaging $75 more per month, is welcome but may not have the same impact in Puerto Rico as in the mainland US, according to José Acarón, state director of AARP Puerto Rico, a nonpartisan nonprofit for people 50 and older. Acarón noted that 851,795 Puerto Rico residents receive Social Security payments, including 124,000 people with disabilities, 146,000 survivors, and nearly 43,000 children, and the program injects $12.8 billion into Puerto Rico's economy.
He stressed Social Security is not an assistance program but one funded by lifelong worker contributions. Acarón questioned whether the increase would be enough to offset rising living costs, especially since medication inflation typically runs three times higher than general market inflation, and elderly people take many medications.
He also noted that average Social Security payments to Puerto Ricans are lower than mainland US averages due to systemically lower wages and contributions on the island, with the average retirement payment in Puerto Rico being $1,315 per month—meaning residents would receive less than the projected $75 monthly increase.