3 things that will help reduce the sting of high inflation

There’s really nothing nice to say about inflation when it comes to your bottom line.

It’s hard on your wallet. It’s hard because your savings reduce the purchasing power of the dollars you’ve lost. And your salary is tough, because the possibility of not keeping up with inflation, which the latest reading puts at 8.2%.

But that high inflation has brought a couple of changes that can be offered to you some relief And every little bit helps.

Starting next year, your pay may be slightly higher thanks to inflation adjustments the Internal Revenue Service will make to the 2023 federal income tax portion and other provisions.

The net effect of these adjustments is that more wages in 2023 will have lower tax rates than this year. And you may be able to deduct larger amounts of income.

Here’s the skinny.

When you save money in a tax-deferred workplace retirement plan like a 401(k) or 403(b), you can reduce your taxable income because you get a deduction for your contribution in the year you make it. The more you save, the more you reduce your tax bill.

Starting next year, you will be allowed to contribute up to $22,500 in most of your 401(k), 403(b), 457 plans, or the Thrift Savings Plan for federal employees.

That’s $2,000 – or roughly 9.8% – more than the current $20,500 federal contribution limit, a direct result of higher inflation. Those are the biggest adjustments made to the limit of contribution in decades.

These changes and changes to IRA contribution limits can be found here.

Social Security recipients will receive an 8.7% annual cost-of-living adjustment next year, the largest increase since 1981.

The increase will raise retirees’ monthly payments by $146, to about $1,827 by 2023.

No one will live long on that amount, but the extra money will offset higher prices for everyday expenses for seniors.

Here’s more on the upcoming boost in Social Security checks, along with the welcome news that Medicare Part B premiums will drop next year.

CNN’s Tami Luhby contributed to this report