Interest rates for October (affecting February benefit commencement dates) rose across the board and finished in line with our forecasts from last month. It also marked the second consecutive month that interest rates have risen from their historically low levels. Currently we anticipate November’s interest rates to finalize very close to where they are for October – meaning BP Employees should expect to see little change in their pension lump sum value between February and March. Most employees separating from BP in the near future are doing so because of the voluntary and involuntary separations being announced. For those impacted, most will be separated either by the end of this year or by March 31st of 2021. As we move into the final month of 2020, January 2021 becomes the most opportune month to collect your pension lump sum benefit.
Understanding how to navigate your BP retirement benefits can be very complicated. We highly recommend you seek advice from one of our financial professionals so you can have the comfort and assurance knowing you are making the most beneficial decision with your BP pension. All too often we hear stories from clients who have coworkers who made the wrong decision solely because they did not understand how the plan rules impacted the collection process. If you are unsure whether you are electing appropriately, please contact our office.
Looking into the first part of next year, we anticipate seeing a continued interest rate increase over time and while an increase generally hurts your pension value, it also means that our economy is doing well and that will likely drive other areas of investment portfolios higher.
If you would like to understand what your options are or how you could benefit from professional advice, we are here to help. Please email email@example.com or call (877)739-6007 to schedule a complimentary consultation. There is no charge for this service.
Tyler E Ryan
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