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The November interest rates, which AT&T uses to determine lump sum values for everyone who retires in 2022 will be released in mid December. Rates increased in November and if that trend holds we could see a reduction in lump-sum values for AT&T employees who retire in 2022. If you decide to stay past December 31st, 2022, you could see a significant reduction in your lump sum. Interest rates are trending upward, and when interest rates rise, lump sums fall. If you believe that interest rates in November 2021 will be higher than November 2020 (Which is likely) you may want to consider retiring before January 1st, 2022. This will allow you to lock in the medical coverage and take advantage of a lower interest rate, which will increase your lump-sum amount.

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Understanding how interest rates can impact your lump-sum is crucial for ConocoPhillips employees, especially those who reside in Texas.

Interest rates are back to trending in the right direction for ConocoPhillips employees, considering the lump sum option on their pension payment, moving into Q1 2022. Interest rates have dropped for individuals who wish to commence their benefits in Q4 2021 and again for Q1 2022. Over the course of 2020, interest rates dropped dramatically, which greatly increased many lump sum payments. However, interest rates spiked modestly from Q1 2021 to Q3 2021. While the overall trajectory of interest rates has been higher, the slight drop in the last two quarters should have the affect of increasing lump sum amounts momentarily.

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For ExxonMobil employees, it is crucial to understand how interest rates can impact your lump-sum particularly those who live in Texas.

While monthly interest rates are trending upward, quarter over quarter blended rates actually fell from Q4 2021 to Q1 2022. If the broader trend of rising interest rates continues it will decrease the value of ExxonMobil employees' pension lump-sums, but for Q1 2022 employees should actually see their lump-sum amounts increase. The IRS has recently released the Segment rates for the month of September, recorded at: 0.7% / 2.55% / 3.06%. Over the course of 2021, interest rates at ExxonMobil increased significantly, which greatly reduced many lump sum payments. With record low rates culminating in the first quarter of 2021, ExxonMobil employees have since seen a significant increase in interest rates. We saw an increase in rates for the second, third, and fourth quarters of 2021 in the second segment, and now first quarter rates for 2022 have dropped slightly. Rates fell roughly 0.24% in the second segment, in the last quarter. The short term rates have experienced a slight increase, while the long term rates decreased significantly by 0.34%. Even though blended rates for the second quarter of 2022 will not be known until the end of December, month over month increases in segment rates may be an early indicator of bad news for ExxonMobil employees opting for a lump-sum.

It is crucial for Chevron employees, particularly those who reside in Texas, to understand how interest rates can impact your lump-sum.

Chevron interest rates decreased by 0.05% in the most influential segment for those who commence their benefit in December 2021. While rates short-term and medium-term rates rose over the last month, the lower average rate will result in slightly higher lump-sums for those retiring in December. When Chevron employees elect the month they would like to begin their pension, Chevron looks back to the third, fourth, and fifth month's rates to calculate the rates used for the pension disbursement. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. Through the pandemic, interest rates dropped dramatically which has greatly increased many lump sum payments. This trend culminated in record lows for individuals who commenced their benefits in December of 2020. However, since December, rates have increased, causing a reduction in pension lump-sums.

This article is important to you considering your experience at AT&T as an employee. 

Many people ask about ways to stay afloat while they’re in-between jobs. What people fail to realize is oftentimes the steps you take before leaving your current job can be even more crucial. Here are a few tips to consider before leaving AT&T.

The November interest rates, which AT&T uses to determine lump sum values for everyone who retires in 2022 will be released in mid December. Rates increased in November and if that trend holds we could see a reduction in lump-sum values for AT&T employees who retire in 2022. AT&T interest rates decreased in 2020 causing 2021 lump sums to hit record highs. However, rates are now rising which will likely reduce lump sums for those who retire in 2022. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. Through the pandemic, interest rates have dropped dramatically which has greatly increased many lump sum payments. This trend culminated in record lows for individuals who commence their benefits 2021. However, rates have increased in 2021, and larger trends show that they will likely increase further, potentially causing a significant reduction in pension lump sums in 2022.

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The Markets (third quarter through September 30, 2020)

Before reviewing your company 401(k) plan, check how the market in quarter 3 can affect your retirement. July kicked off the third quarter with a bang as stocks surged throughout much of the month. Investors were encouraged by solid employment growth, a rise in personal income and consumer spending, a surge in the housing sector in your area, and an increase in industrial production. All news was not positive, however. The second-quarter gross domestic product fell more than 31% and many states saw an increase in the number of reported COVID-19 cases. Nevertheless, investors stayed with equities, pushing values higher for the fourth consecutive month. Tech stocks drove the Nasdaq to a 6.8% gain, followed by the S&P 500 (5.5%), the Global Dow (3.5%), the small caps of the Russell 2000 (2.7%), and the Dow (2.4%). Treasury bond prices climbed, sending yields lower in July. Crude oil prices settled at $40.40 per barrel, nearly $1.00 ahead of their June closing values. Gold prices closed July at $1,990.00, about 11% higher than June's closing price.

This article is pertinent to all age groups, however those entering their Retirement Years will find the information particularly important. Interest rates are tending upward, if this trend continues it will decrease the value of ExxonMobil employees' pension lump-sums. The IRS has recently released the Segment rates for the month of August, recorded at: 0.66% / 2.50% / 3.12%. Over the course of 2021, interest rates at ExxonMobil increased significantly, which greatly reduced many lump sum payments. With record low rates culminating in the first quarter of 2021, ExxonMobil employees have since seen a significant increase in interest rates. We saw an increase in rates for the second & third quarters of 2021 in the second segment, and now fourth quarter rates have risen slightly higher. Rates rose roughly 0.04% in the second segment, in the last quarter. The short term rates have experienced a slight increase, while the long term rates saw a slight decrease. Even though blended rates for the first quarter of 2022 will not be known until the end of September, this recent trend upward might be an early indicator of bad news for ExxonMobil employees opting for a lump-sum.

Interest rates are trending in the wrong direction for ConocoPhillips employees, considering the lump sum option on their pension payment, moving into Q1 2022. Interest rates had dropped for individuals who wish to commence their benefits in Q4 2021. Over the course of 2020, interest rates dropped dramatically, which greatly increased many lump sum payments. However, interest rates have been on the rise since Q1 2021. A segment rate increase in Q4 indicates an upward trajectory of interest rates. If this continues, lump-sums will rise again in Q1 2022. Should you desire to take your pension as a lump sum, ConocoPhillips will use interest rates and your age to calculate your lump sum payment. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship (except for Cash Balance Pension Lump Sum payouts). Even though it is too early to know blended interest rate figures for the first quarter of 2022, August figures were just released, and they show a slight increase, which is bad news for ConocoPhillips employees electing a pension lump-sum. August segment rates were recorded at: 0.66% / 2.50% / 3.12%.

Chevron interest rates decreased 0.11% in the most influential segment for those who commence their benefit in November 2021. This correlates to this month's overall decrease in rates, and the result will be slightly higher lump-sums for those retiring in November. When Chevron employees elect the month they would like to begin their pension, Chevron looks back to the third, fourth, and fifth month's rates to calculate the rates used for the pension disbursement. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. Through the pandemic, interest rates dropped dramatically which has greatly increased many lump sum payments. This trend culminated in record lows for individuals who commenced their benefits in December of 2020. However, since December, rates have increased, causing a reduction in pension lump-sums.