Inflation is soaring. The 2022 COLA will be 5.9%. Inflation is now at 7.6% over 12 months per the CPI-W and the 2022 federal pay raise is projected at 2.7%.
Inflation has been rising at a much higher rate than usual. How can this impact a federal employee’s retirement?
The 2021 inflation rate so far is now 6.2%. With a projected 2022 federal pay raise of 2.7%, and a COLA of 5.9%, purchasing power is declining fast.
The 2022 COLA will be determined by inflation during a three-month period. Here are the latest inflation figures impacting the January COLA payment.
Enjoying your Social Security benefit prior to age 65 means less money to pay the Medicare Part B premiums – for the rest of your life.
Federal pay raises granted over 8 years totaled 13.1%, however, the actual average salary went up 18.6%. In DC, the average salary went up 21%.
Inflation is up again in July. There is another higher projection for the 2022 COLA figure to be announced in October.
The 2022 COLA will be significant but lower for FERS than for CSRS. Here are the differences and an explanation for the differences.
Social Security recipients are likely to get a big COLA in 2022, but the author notes that this is a major financial burden for the program.