Attn BP Employees,
August interest rates, which affect retirees collecting their BP RAP benefits on December 1st show little change from July and indicate the current environment of low interest rates will hold up through the end of the year. We have extensively discussed the possibility of this happening in our pension commentary for the past several months and with the final numbers now being released we can firmly say that your pension benefits in November and December will be at or near their peak levels for 2021. Our current interest rate forecast for January 2022 is calling for rates to remain relatively in line with their current levels, but we anticipate they will start to increase in the coming months.
With last week’s highly anticipated announcement from the Federal Reserve Bank indicating it will begin reducing the level of bond purchases it has been making throughout the pandemic, the current low interest rate environment appears to be in jeopardy and will likely be coming to an end at some point in 2022. The specific time of when this will occur still depends on how our economic activity unfolds as we enter the final quarter of 2021. Current projections on Wall St suggest interest rates are likely to begin drifting noticeably higher in the first or second quarter of 2022, but that is merely speculation at this point.
If you are considering retiring or separating from BP in the near future, we strongly recommend you contact our dedicated team of BP Employee Retirement Specialists. We can help you understand how and when to collect your pension benefits. This service is free of charge for all BP Employees and Retirees.
To schedule a complimentary consultation with our team email firstname.lastname@example.org or call us directly at (877)739-6007.
Capstone Wealth Advisors
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