Higher Retiring: Social Safety, Healthcare, Taxes, Financial savings: Key Numbers People Ought to Keep in mind In 2022

It's hard to believe that 2021 is almost over. Time seems to go by faster and faster, doesn't it? And now that 2022 is around the corner, retirees and Americans still working and saving for retirement should know some data points that could come in handy in the New Year:

$ 20,500: That's how much individuals can add to their 401 (k) plans in 2022, according to the Internal Revenue Service. That's $ 19,500 for 2021 and 2020.

$ 27,000: what participants in 401 (k), 403 (b), most 457 plans, and the federal government's savings plan who are 50 and older can contribute in 2022.

$ 3,000: the catch-up contribution limit for employees aged 50 and over who participate in SIMPLE plans. This is unchanged from 2021.

$ 6,000: this is the limit for annual contributions to an IRA for 2022, which is unchanged from 2021. The so-called "catch-up contribution limit" for people aged 50 and over remains at USD 1,000.

$ 6,500: the catch-up contribution limit for employees aged 50 and over who participate in 401 (k), 403 (b), most 457 plans and the federal government's savings plan.

For more information on savings limits in 2022, please visit this IRS website.

Read: The dire inflation result and what retirees can do

social insurance

5.9%: This is how much social security benefits will increase in 2022 – after the largest increase in the cost of living in four decades.

6.8%: the current rate of inflation, based on the November consumer price index (CPI).

$ 1,646.74: the expected monthly benefit for social security recipients from January.

2.6 to 1: the approximate number of working Americans per Social Security beneficiary. This is a key figure because the lower the quota, the greater the financial burden on workers who may face higher taxes in the coming years to support the growing numbers of retirees. Additional pressures: the lowest birthrate in the US in decades and a sharp drop in legal immigration since 2017.

2034: this is when the Social Security Trust Fund is likely to run dry, according to the latest estimate by the Social Security Trustees.

22%: That's how much social security benefits may need to be cut in 2034 if the Social Security Trust Fun dries up, according to the latest estimate from the Social Security Trustees.

For more information on social security, see this Social Security Administration website.

Obsessed with Retirement? Read more coverage here

Medicare and Medicaid

$ 170.10: the standard monthly premium for Medicare Part B participants (which provides ambulatory / medical coverage). This is an increase of $ 21.60, or 14.5%, from the monthly value of $ 148.50 in 2020. These numbers are subject to change based on your monthly income. More information here.

$ 233: the annual deductible for all Medicare Part B beneficiaries in 2022. This is an increase of $ 30, or 14.7%, over the annual deductible of $ 203 in 2021.

$ 43: the estimated median monthly premium for Medicare Part D (which covers standalone drug plans) based on a current estimate by the Kaiser Family Foundation.

$ 7 to $ 99: the range of average monthly premiums for the 16 national prescription drug plans (PDPs) in 2022, according to a recent estimate by the Kaiser Family Foundation.

$ 480: according to Kaiser, the standard maximum deductible for most Part-D students in 2022.

$ 1,556: the inpatient hospital deductible for the first 60 days of hospitalization (according to Medicare Part A). That's a $ 72 increase, or 4.8%, from 2021.

$ 2,523: the monthly income limit (before taxes and Medicare and health insurance premiums) that allow someone to receive Medicaid long-term care. Medicaid recipients must also have less than $ 2,000 in countable assets (exempted up to a certain limit as long as the applicant lives in a home).

Total health costs

6.5%: the projected increase in patient care costs in 2022, according to an estimate by PWC's Health Research Institute. That's half a percentage point less than in 2021, when health spending rose due to the Covid-19 pandemic. Typically, healthcare providers pass many, if not all, of these costs on to patients.

$ 300,000: what a couple who retired at the age of 65 in 2021 could spend on health care out of pocket for the rest of their lives, according to an annual estimate by Fidelity Investments. Given the projected increases in various health care expenditures in 2021, it is expected that this number will increase with the next estimate in the spring. That $ 300,000 figure is up 30% in a decade, says the Boston-based investment giant.

overview

Those numbers were disheartening even before the pandemic and global supply chain drove inflation high. In addition to soaring healthcare costs, seniors are grappling with inflation, which is driving up rents, groceries, energy bills and more, at least for the time being. The New Year may offer little rest and, to be honest, a downward adjustment in living standards.

For those who are still working, the advice that has always been: save, save, save. Then you save a little more. According to the Transamerica Center for Retirement Studies, the average savings for Americans over 50 is $ 117,000. Median means that half has even less than this modest amount. Then look at the current rate of inflation – the consumer price index – of 6.8%. That makes those 117 grand effectively worth $ 109,000. Inflation can have a dramatic effect on purchasing power. If you can keep working this is something you should consider.

I want to hear from you: How do you deal with inflation? Send me an email: RetireBetterMarketWatch@gmail.com.