BP Employees,

Interest rates for November (affecting March 1st benefit commencement dates) were mostly in-line with our projections, showing little change from previous months. The past three months have shown a minimal change in corporate bond rates, while government bond rates have risen substantially. Your pension is highly tied to corporate rates and not government rates.  While the economic picture has improved overall, it has also shown signs of leveling off in the near term. Currently, we anticipate corporate interest rates will remain relatively flat next month but could increase as we look further into the future.

On December 16th, the Federal Reserve announced it would hold its benchmark interest rate at the current near-zero level into 2023.  Adding, they would not begin reducing the current bond buying program (a form of economic stimulus) until “substantial further progress” has been made in the economic recovery.  The announcement noted further optimism in its economic forecast citing the economic upside potential for COVID vaccines and restrictions eventually being lifted on businesses. Additionally, recent positive developments surrounding another round of stimulus, and an expectation of lower unemployment in 2021, are giving hope that there will be a notable economic resurgence, post COVID.

This announcement has significant importance for those of you looking to retire next year.  While positive economic news is bullish for stocks, it generally leads to higher interest rates.  Interest rate changes can dramatically affect your pension lump sum value – the lower rates are, the higher your pension’s lump sum value is.

It is important to understand how your pension is impacted by movements in interest rates, since they can affect the value you receive when you retire.  It is imperative that you time your decision correctly to maximize your pension’s value.

At Capstone Wealth Advisors, we specialize in knowing and understanding the intricate details of how your BP retirement benefits work. Our team of experienced advisors can assist you with choosing the most beneficial time to retire, maximizing what you are eligible to receive. To schedule a complimentary consultation with one of our experienced advisors simply email us at info@capstonewealthadvisors.com or call us directly at (877)739-6007.


Tyler E Ryan


Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Stock investing involves risk, including loss of principal. International & Emerging Markets investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in Emerging Markets.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

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