Low wage growth and no annual cost of living adjustments by Social Security will undoubtedly result in greatly reduced Social Security benefits, The Senior Citizens League said in a report issued Wednesday. Those who become eligible for benefits in 2011 will receive lower benefits than those born a year earlier.

The League estimates that lower wage increases and no COLA in 2011, for the second year in a row, will cost Boomers up to $40,000 in Social Security benefits. Higher-earning seniors stand to lose even more. Should the Social Security Administration suspend COLAs in future years, that will impact their Social Security benefits even further.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.