Puerto Rican workers could reach retirement age without a full Social Security benefit, according to the latest trustees report released in June 2025.
What the latest trustees report says
The June 2025 report of the Social Security Board of Trustees states that the Old‑Age and Survivors Insurance (OASI) and Disability Insurance (DI) trust funds “will have sufficient dedicated income to pay all scheduled benefits and associated administrative costs through 2034, one year earlier than the projection from last year.” However, it also projects that the OASI trust will be exhausted in 2033, the same year projected in the previous estimate.
Why it matters for Puerto Rico
The Social Security program serves roughly 70 million beneficiaries nationwide, including 833,239 residents of Puerto Rico who receive a combined $985 million in monthly benefits (December 2024 data). A 1983 law set the full‑benefit age at 67 for anyone born in 1960 or later – the cohort that makes up most of today’s Puerto Rican workforce. Workers may begin claiming at 62, but benefits are reduced by 30 percent; the maximum claim age is 70, which adds roughly 8 percent per year of delayed retirement.
Experts warn that if Congress does not act before the projected shortfalls, beneficiaries may see a **20 percent reduction** in their monthly checks by 2034.
What officials say
Victor Rodríguez, a former Social Security spokesperson in Puerto Rico, explained that the program is intended as a safety net, not a sole source of retirement income. He emphasized that workers contribute 6.20 cents per dollar earned, matched by employers, plus 1.45 cents for Medicare hospital coverage – rates that have not changed since 1991. For 2026, the taxable wage base is capped at $184,500; earnings above that level do not increase contributions.
Resident Commissioner Pablo José Hernández told Primera Hora that bipartisan committees are reviewing the trustees’ projections, but no definitive legislation has been introduced yet. He noted that “the challenges are real but solvable” and that Congress must act before the 2034 deficit to avoid widespread benefit cuts.
What could happen next?
If Congress moves, possible actions include raising the payroll‑tax rate, eliminating the wage‑base cap, or further increasing the full‑benefit retirement age. Any of these measures would generate additional revenue to extend the trust funds’ solvency.
Conversely, if no legislation is passed, the OASI fund is likely to run out by 2033, which could trigger the projected 20 percent cut to benefits for Puerto Rican retirees beginning in 2034.
Frequently Asked Questions
When is the OASI trust fund expected to be depleted?
The trustees’ June 2025 report projects the OASI trust fund will be exhausted in 2033.
At what age can Puerto Rican workers claim full Social Security benefits?
Workers born in 1960 or later must wait until age 67 to receive 100 percent of their benefit, according to the 1983 law.
What is the estimated impact if no congressional action is taken?
Beneficiaries could experience a roughly 20 percent reduction in their monthly Social Security checks by 2034.
How do you think these potential changes could affect the financial security of Puerto Rico’s retirees?
