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.