Interest rates for April, impacting retirees collecting their BP RAP benefits on August 1st, 2022, unsurprisingly raised significantly last month. Fed Chair Jerome Powell and several of the Fed Board of Governors have been talking publicly about the need to continue raising short-term rates throughout the remainder of 2022 in order to get inflation under control.
The Fed has clearly signaled to investors they should be prepared for higher short-term rates in the coming months, and we see no reason to doubt that perspective. However, some economists point out that the bond market has already done some of the work by pushing longer-term interest rates higher – implying that the pace of increases should begin to slow in the coming months.
Interest rates directly affect the bottom line of your pension and understanding the mechanics behind this can mean the difference between thousands of dollars, if not more at retirement. If you would like to learn more about how your pension is impacted by interest rates or if you are concerned at the overall situation of financial markets today, please do not hesitate to contact one of our experienced financial advisors who specializes in knowing the inner working of your BP RAP plan. This service is free of charge for all BP Employees and Retirees.
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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