The Numbers That Matter in 2022
Key figures that might affect your retirement planning this year.
Every year, there are certain numbers that carry a lot of significance in preparing for retirement—and in your day-to-day financial planning. Some are specific to you. For example, your leave and earnings statement or latest retirement statement will show the effects of health insurance changes if you made them during the 2021 open season. And your annual Thrift Savings Plan participant statement is now available at the TSP website under “My Account.”
Other numbers are of more general significance. Here are some of them for 2022:
The new salary cap for General Schedule employees, up from $172,500 in 2021.
The cost of living adjustment reflected in annuity payments received on Jan. 2 (effective Dec. 1, 2021) for those who have retired under the Civil Service Retirement System. Social Security recipients also got a 5.9% increase in their benefits.
The “diet COLA” those who have retired under the Federal Employees Retirement System received. FERS annuitants under 62 are not eligible for COLAs unless they retired under certain special provisions, such as those for law enforcement officers and firefighters. For those new FERS retirees eligible to receive a COLA, the COLA is prorated based on the number of months before Dec. 1, 2021 that they retired.
The maximum Social Security taxable wage limit in 2022, up from $142,800 last year. The earnings limit for Social Security beneficiaries who haven’t reached their full retirement age increased from $18,960 to $19,560.
The interest rate for civilian and military service credit deposits and CSRS voluntary contributions. The rate is unchanged from 2021.
The standard monthly premium for Medicare Part B, up from $148.50 per month last year.
The elective deferral limit for Thrift Savings Plan contributions, up from $19,500 in 2021. The limit on catch-up contributions remained at $6,500. Under a change implemented in 2021, if you’re 50 or older and you reach the elective deferral limit before the end of the year and continue to save, then your contributions will automatically continue toward the catch-up limit. That also extends to those who are 49 but will turn 50 by the end of 2022.