RAP/Pension InterestRate Chart February 2020

BP EMPLOYEES,

Let’s address the elephant in the room. By now you’ve all heard the news of the highly volatile sell-off hitting global equity markets last week with intraday swings on the Dow Jones Industrial Average reaching more than 1,000 points and seeming to be the new normal lately. While nobody likes seeing this level of downward volatility in financial markets, we must also accept it to be a reality in todays world of technology and immediate availability of information.

As fears of Coronavirus spreading across the globe grew, so did the sell off on Wall St. But there is a silver lining to this otherwise dark cloud – your pension’s lump-sum value. How interest rates impact your BP Pension is one aspect commonly overlooked by BP Employees. The sell off on Wall St. sent bond rates plummeting to all time historic lows – lower interest rates mean higher pension values for you.

The current interest rates affecting your BP RAP were released late February and are based on January’s figures. January’s rates will impact retirees looking to collect their pensions on May 1st. As of today, the January rates are some of the lowest we have ever seen, however we are forecasting interest rates to continue to drop for February and potentially into March. This means that retirees looking to file for their pension should strongly consider waiting to collect their pension lump sum until June at the earliest and possibly later depending on what happens in the coming weeks or months. Heritage employees will see a significantly larger impact vs non-Heritage employees from these low rates.

As this situation has illustrated, having a financial advisor with a deep knowledge and understanding of your pension and other BP retirement plans can help save you from making mistakes which could cost you a lot of money. Our team at Capstone Wealth Advisors are dedicated to providing that service to you and your co-workers and have specialized in the BP Retirement Plan for more than 15 years.

If you would like assistance with how this could affect you, please email tyler@capstonewealthadvisors.com or call our office directly at (877)739-6007 to have one of our BP Retirement Plan Specialists assist you with determining how expected changes in interest rates may impact you.

Tyler E Ryan

877-739-6007

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

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