The Average Social Security Benefit In US Territories Might Surprise You

If you assume that Social Security checks in U.S. territories are on par with the national average, the official numbers say otherwise: They're much lower. Based on 2024 Social Security Administration (SSA) data, average monthly benefits came to $1,012 in the Northern Mariana Islands, $1,159 in American Samoa, $1,262 in Puerto Rico, $1,344 in Guam, and $1,657 in the U.S. Virgin Islands. Meanwhile, the national retired-worker average from the same SSA table was about $1,975.

Social Security retirement benefits are based on a worker's highest 35 years of recorded earnings, and applying early reduces the monthly check. If you have fewer than 35 years of earnings, years with no earnings get folded into the formula, thereby pulling the benefit down. Since many of these territories are under greater economic strain and have lower wages than the states, this calculation formula partly explains why they also have lower average benefits. 

Another part of the broader Social Security problem in the territories is what legal scholars call "territorial exceptionalism." This political doctrine means Americans in most territories can be cut out of parts of the welfare state simply because of where they live. As a result, limited access to supplemental programs and lower earnings compound each other, widening the gap between Social Security benefits recipients in the territories and the states.

Lower earnings are the most direct reason benefits in the territories trail those in the mainland. For example, according to the Bureau of Labor Statistics (BLS), Puerto Rico had an average weekly wage of $718 in late 2024, less than half the U.S. average of $1,507. Guam and the U.S. Virgin Islands also trailed the national average, with average wages of $21.39 and $24.82 an hour, respectively, versus $32.66 per hour nationwide. Since Social Security retirement benefits are calculated from a worker's highest 35 years of earnings, a career spent in a lower-wage economy produces a smaller benefit check by design.

According to the U.S. Government Accountability Office (GAO), the territories face growth issues, including high import and energy costs, population loss, and extreme weather. These have all hurt major industries and, consequently, driven down wage earnings and Social Security benefits. On top of these challenges, territory economies tend to rely on relatively narrow economic bases, such as tourism, federal spending, or a single industry like tuna canning in American Samoa. Geographic isolation also drives up the cost of imports and limits market access, while smaller labor markets offer fewer high-paying jobs.

Then there is territorial exceptionalism. Congress has broad authority over the territories under the Constitution's Territory Clause, and it has historically chosen not to extend every federal benefit program to these jurisdictions. Supplemental Security Income is one example: SSI is available to eligible residents of the 50 states, Washington, D.C., and the Northern Mariana Islands, but not to residents of Puerto Rico, Guam, American Samoa, or the U.S. Virgin Islands.

Compared with the broader U.S. demographics, there are fewer retiree SSA beneficiaries in the territories. According to SSA's December 2024 Congressional Statistics, retired workers made up about 75.6% of Social Security beneficiaries, and disabled workers made up 10.6% across U.S. states, territories, and foreign countries. In Puerto Rico, a notably smaller portion of benefits — about 63.0% — were paid out to retirees. Meanwhile, American Samoa was a major outlier, with just 46.4% of SSA benefits going to retirees; at the same time, the territory had a large share of disabled workers and children. The U.S. Virgin Islands were the exception, with retirees making up about 80.7% of recipients.

What those splits really show is that Social Security in most of the territories is often supporting entire households, not just retirees. The SSA's eligible recipient categories include disabled workers, survivors, spouses, and children, and in places like Puerto Rico and especially American Samoa, those groups make up a larger share of beneficiaries than in the broader U.S. mix.

Note that moving from a state to a U.S. territory will not wipe out your Social Security benefits. For Social Security purposes, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa are part of the United States. The big exception is SSI, which is a different program entirely. If you're moving to a territory where the cost of living is lower, but SSI is unavailable, cheaper rent or lower daily expenses may not make up for losing a federal cash benefit. This is especially vital now that SSI has undergone major changes, which made the benefits more generous.