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According to a CNBC report referencing findings from the Financial Industry Regulatory Authority’s (FINRA) Investor Education Foundation, nearly 47% of individuals surveyed in Puerto Rico display financial fragility or express uncertainty about managing a $2,000 financial shock.
“This marks the first instance of a study of this kind being conducted in Puerto Rico,” remarked Harold Toro, one of the co-authors and a research lead at the Center for a New Economy, an economic think tank located in San Juan.
“It sheds light on sensations and experiences that people encounter but for which it is difficult to gather statistical data,” Toro told CNBC.
A significant proportion, over half, specifically 59%, of adults aged 18 to 29 on the island are financially precarious, in contrast to 47% of those aged 30 to 54 and 41% of individuals over 55, as discovered by FINRA. The organization conducted a survey of 1,001 adults residing in Puerto Rico in 2021, according to CNBC.
“When we evaluate financial fragility and capacity in Puerto Rico … the situation is quite severe compared to the mainland United States,” stated Olivia Valdés, co-author and senior researcher at the FINRA Investor Education Foundation.
Financial instability, particularly among young people, is significantly more prevalent in Puerto Rico than on the mainland U.S. The 59% of young adults aged 18 to 29 facing financial difficulties in Puerto Rico sharply contrasts with 38% of the same demographic on the mainland, according to FINRA data shared with CNBC.
In 2021, around 30% of the overall U.S. population was identified as financially fragile, based on FINRA’s recent report on Financial Capability in the United States, which surveyed 27,118 adults across the U.S. The survey focused on Puerto Rico was distinct but conducted concurrently.
Many young adults migrate from Puerto Rico in search of better financial opportunities, whether through education or job prospects in the U.S. or abroad. Those who remain must face an economy undergoing recovery, an unstable power supply, and rising living costs.
FINRA’s findings indicate that adults aged 18 to 29 in Puerto Rico are less inclined than those aged 30 and older to report having savings for emergencies or retirement.
Fewer than a quarter, precisely 22%, of individuals aged 18 to 34 in Puerto Rico possess any form of retirement account, whereas 43% of the same age group on the mainland U.S. do, according to FINRA’s broader analysis.
Additionally, young adults in Puerto Rico tend to have higher levels of student loans and medical debt compared to older residents, as outlined in the report.
