April’s interest rates (for those retiring before August 1st, 2019) have continued their decline over the past several months. This is mostly due to concerns that an economic slowdown may be coming for several major foreign countries and concerns about how that could impact the currently strong US economy.  This past month has seen significant declines on bond rates and as a result we are making the necessary changes to our medium and long-term forecast for where we anticipate pension rates to be at.

We believe its likely interest rates will not be rising again until trade issues with China are resolved at the earliest and depending on how the final trade agreement is structured, we could see interest rates continue to decline for the next several months. This means if you are a Heritage Employee, you will likely see noticeable gains in your pension balance.  Because the overall outlook for interest rates is highly dependent on outcomes of political issues, we would caution BP Employees who are considering retirement this year to pay close attention to how these interest rates impact your pension lump sum values. For example, if you are a Heritage Employee who is retiring this year you may want to consider waiting to collect your pension until this current decline in interest rates stops and we see stability in bond markets again. As interest rates drop lower, pension lump sum values generally go higher, so the timing of when you exit BP is especially important.  Non-Heritage Employees will not see the same impact as Heritage Employees because your pension value is calculated differently, however you should still carefully review how you are affected by waiting to collect your pension prior to making a formal decision. 

If you are considering retiring within the next one to two years, we would highly encourage you to talk with one of our retirement planning specialists who can help you understand what your potential retirement timeline looks like and how to strategically plan your exit.

If you are a Heritage Employee, but do not know how to verify which formula you are receiving, please contact our office directly and we will assist you free of charge and with no obligation.

If you would like to discuss your personal situation in more detail, please reply to this email or call 877-739-6007 to schedule a private consultation. There is no charge for this service to BP Employees.

Tyler E Ryan

Capstone Wealth Advisors



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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