ATTN BP Employees,

Updated interest rates that impact your BP Pension (BP RAP) have been released. For a clear understanding of these changing rates, please find attached our interest rate chart detailing the current interest rates influencing your BP RAP and our predictions for where they may head in the future.  The top row contains the current interest rates used to calculate your pension for the months listed.  The bottom row contains Capstone Wealth Advisors’ estimate of where we forecast rates going to for the various future dates listed.

What You Need to Know:

  1. Interest Rates used to calculate your BP RAP pension came in slightly above our forecasted estimates, but only by a slight margin. This impacts BP Retirees selecting June 1st as your Benefit Commencement Date. For March, we anticipate rates to remain relatively flat over the coming month as compared to February’s figures.
  2. What Does this Mean for You? With the current interest rates continuing to remain at elevated levels not seen over the past 20 years, and the likelihood that rates will drop later this year, BP Employees looking to retire in 2024 will likely want to wait to collect their pension until the second half of 2024. We strongly encourage you to contact us to discuss the impact these rates could have on your BP RAP and your overall retirement goals. We can help you understand the best option for your long-term retirement planning needs.
  3. Why are the Rates Changing? Interest rates are widely expected to decrease when the Federal Reserve begins lowering its target interest rate level.  The Current expectation is the Fed will begin lowering rates in June and gradually continue to lower interest rates periodically throughout the remainder of 2024 and in to 2025.
  4. What’s Next? At the Fed’s March meeting, Fed Chair Powell said the Fed still anticipates cutting short-term rates three times this year. That move boosted investor confidence in the short term and may help boost longer-term confidence too but, only time will tell.

 

Need Some Guidance?

If all of this feels a bit confusing, do not worry. We’re here to help! Our team of financial advisors is well-versed in all things related to BP retirement plans. Whether it is the BP RAP, ESP, SVP, RRSP, or any other BP-related plans, we have you covered.

Want to learn more? Simply email us at info@capstonewealthadvisors.com or give us a call at (877)739-6007.

Best wishes,

Capstone Wealth Advisors

Bellingham, WA

877-739-6007

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