April’s interest rates, affecting those of you retiring before August 1st, show a substantial decline versus March’s rates. We expect May rates to continue that decline as US Government stimulus programs continue their current track. Please note, we are forecasting another noticeable rate drop in May and as result, September is currently the best month to file for your pension lump sum benefit.
As the country begins to reopen, we anticipate continued volatility in financial markets, however at a substantially lower level versus what we have seen in the past two months. Whether states can reopen and avoid substantial increases in COVID-19 cases and deaths will be the true test of where equity markets and bond rates go from here. Our belief is that the reopening will be mostly successful, and our country will begin the process of getting back to a more normal structure.
In last month’s BP pension email, we cautioned BP Employees against taking their lump sum option in July and hinted that September would likely be a better month. We hold by that analysis and strongly recommend BP Employees claim September as their benefit date.
If you are retiring or separating from BP before August, the upcoming rate drop will be good news for your pension. We highly encourage you to talk with one of our retirement planning specialists to discuss how to strategically plan your exit and maximize your pension value.
If you are not yet a client and would like to discuss your personal situation in more detail, please email email@example.com or call our office at (877)739-6007 to schedule a complimentary consultation. There is no charge for this service to BP Employees.
Tyler E Ryan
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