Bank of America’s recent Workplace Benefits Report highlights two critical areas where employees seek financial wellness resources: retirement education and planning, as well as strategies for generating income during retirement.
Starting November 17, Bank of America clients enrolled in their employer-sponsored Personal Retirement Strategy program will have the option to convert 401k assets into retirement income, free of charge for both the corporate plan sponsor and plan participants.
This new digital solution will enhance 401k recordkeeping and take into account various personal factors, including cost-of-living adjustments, state and federal taxes, and required minimum distributions.
Additionally, flexible deposit options will be available, allowing participants to choose their payment methods and deposit accounts, whether with Bank of America or elsewhere.
Real-time monitoring will enable ongoing income tracking, allowing retirees to adjust their income as needs evolve over time. The Personal Retirement Strategy program employs a probabilistic approach to assess how likely participants are to accumulate the necessary assets to meet their annual retirement income goals.
To further address the concerns of both employers and employees, the 401k Pay program has been developed. Lorna Sabbia, head of workplace benefits at Bank of America, notes that 401k Pay was created in collaboration with corporate clients looking to provide their employees with effective retirement income solutions. She emphasizes that incorporating such resources into workplace benefits can lead to improved financial outcomes and drive business results, including enhanced productivity, job satisfaction, and employee retention.
Tom Matarazzo, managing director of institutional retirement advisory programs and financial wellness solutions, adds that retirement readiness and income planning are top priorities for plan participants. The 401k Pay program aims to tackle these concerns directly, offering a leading digital solution for retirement income planning and management.