Average resident’s emergency savings falls below $400
By THE STAR STAFF
AARP Puerto Rico is sounding the alarm over the island’s fragile financial safety net, warning that most residents have little to no savings to withstand an unexpected crisis.
José Acarón, AARP’s executive director, said in a radio interview that the average amount Puerto Rico residents keep in the bank for emergencies does not exceed $400. The figure, he noted, reflects a deepening economic strain that spans multiple generations.
Acarón said nearly 70% of residents report they do not save monthly for retirement. The organization’s findings show that older adults are increasingly responsible not only for their own expenses, but also for those of their parents, children and grandchildren.
“What used to be called the sandwich generation is now a tripleta,” Acarón said. “I’m supporting my parents, my children, and my grandchildren. And that has enormous consequences.”
He warned that the rising cost of living is forcing many older adults to delay retirement. Workers in small and midsize businesses, as well as public employees, often lack adequate mechanisms to prepare for life after their careers end.
Acarón, who turns 66 this year, said his own generation is facing the reality of extended working years.
“We still have loans, we’re supporting others, we have responsibilities, and the cost of living keeps rising,” he said.
He added that a person retiring at 65 may need resources to cover 25 to 30 more years of life, raising the question of whether current savings and preparation are enough.
“The answer is no,” he said. “And that’s where we see the impact of the rising cost of living.”
Acarón also highlighted a troubling trend among people in their 40s and 50s, who often prioritize helping their children and grandchildren over building their own retirement savings. That generational pressure, he cautioned, could leave many entering retirement without sufficient financial support.
AARP says the data underscores an urgent need for stronger financial education, better retirement planning tools, and policies that help islanders build long‑term economic stability.
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