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Rate hike could herald easier times in retirement saving

The combination of a rate hike and an ongoing stock market rally means that investors saving for retirement will benefit, a report from BlackRock says.

By Marlene Y. Satter | Updated on January 09, 2017
Rising interest rates lower the cost of retirement income. (Photo: Getty)

The December rate hike by the Federal Reserve could mean that those saving for retirement will have an easier time trying to accumulate enough money to see them through.

According to BlackRock, the anticipation of additional rate hikes after the Fed’s Federal Open Market Committee boosted interest rates by a quarter point in December gave markets the taste for additional increases. And that anticipation has already resulted in a 16 percent drop in the cost of future retirement income.

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