BP Employees,
What changed this month
Interest rates used to calculate your BP RAP pension lump-sums came in almost exactly as we had forecasted last month. Our forecast called for a slight decrease in rates, which is what happened.
Looking ahead
Based on market expectations and the Fed’s new policy direction, we are forecasting that the rates used to calculate your BP pension will drop further next month. This could create a window of opportunity for some employees, since lower rates can mean higher lump sum values.
What’s driving the outlook
Last week, (September 17th), the Federal Reserve officially announced its first interest rate cut of this cycle. Chair Jerome Powell, in his press conference following the announcement, explained that the decision was made to help sustain economic growth while inflation continues to gradually ease. Powell also emphasized that while the Fed does not want to risk cutting too aggressively, they believe the time has come to start adjusting policy to better balance inflation concerns with risks of slowing growth.
Why this matters
Even small changes in interest rates can make a noticeable difference in your pension lumpsum amount. With the Fed now entering a rate-cutting cycle, the next several months could be especially important for those considering retirement.
What you can do
If you’re thinking about retiring or want to calculate your BP RAP pension under today’s interest rates, reach out to us. We can provide updated estimates and help you as you plan to collect your pension.
If you would like to discuss your situation in more detail, email us at info@CapstoneRIA.com or call us directly at (877) 739-6007, and we will be happy to schedule a free, no-obligation consultation with our Financial Advisors.
Next update
We’ll continue tracking the data and send another update next month.
Best wishes,
Capstone RIA
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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Capstone RIA and its representatives are separate and apart from BP or Fidelity Investments.
