If you were born in 1960, it turns out you had bad timing. A portion of the Social Security benefit formula is based on national average wages for each cohort of 60-year-old workers. It’s not yet certain how long double-digit unemployment rates will last, but it’s a safe bet that record job losses will bring down average wages this year. That means a middle-income worker who was born in 1960 could see her Social Security benefits reduced in retirement by 14 percent, or $3,900 a year, according to a study from the University of Pennsylvania’s Wharton School.
