The Federal Reserve has increased interest rates in the US by 0.25% bringing some much needed Christmas cheer for savers and perhaps signalling to other national banks to follow suit.

In adjusting rates to 0.5% (from the historic low of 0.25%) the Fed said that the decision was based on the economy “expanding at a moderate pace”, with spending and investment increasing at “solid rates” and an improved housing sector.

In the UK, the question is thought to be when rather than if the Bank of England will raise rates.

Governor Mark Carney has remained tight lipped saying only that interest rates in the UK will remain ‘low for long’ and that any increase will be ‘limited and gradual’.

Historically, US and UK market interest rates, as measured by government bond yields, have moved in tandem and he UK’s economic recovery is said to be well on track, with solid growth and a strong labour market.

More coverage: 

The Guardian

FT

The UK state pension is one of the worst in the world, according to research comparing retirement provision among the globe’s wealthiest nations.

The report from the Organisation for Economic Co-operation and Development (OECD) found that Britain’s state pension pays out on average of 38% of what a recipient earned before they stopped work.

Across 34 countries, only Mexico and Chile are more miserly. Even the Government’s “triple lock” policy, which raises the state pension by whichever is highest of inflation, earnings growth or 2.5 per cent, fails to find favour with the OECD.

However, many countries around the world are struggling to maintain the value of state pensions, and the chances that any of them will be able to sustain current levels with people living longer are slim.

How are you placed? Do know what your pension will provide for you in retirement? Now may be the time to find out!

See how pension provision compares country to country:-

http://www.telegraph.co.uk/finance/personalfinance/pensions/12027972/Hands-off-our-pensions.html