Helping 401k plan participants establish and pursue appropriate retirement income goals is a common objective of plan sponsors, and one that has received increased attention lately as companies look to get and keep employees on track.
Another tool was introduced today by Bank of America in the form of a new digital investment advisory program called Personal Retirement Strategy. Institutional and corporate retirement plan clients can now offer this Merrill program designed to help 401k plan participants establish and pursue their retirement income goals.
The program delivers personalized insights, guidance and tools, as well as access to digital investment management services seamlessly integrated into the 401k experience. Personal Retirement Strategy is the latest addition to Financial Life Benefits, a comprehensive suite of workplace benefits and solutions that helps address employees’ every day and long-term financial needs.
“More than ever before, employees are looking to their employers to provide benefits that help them navigate the complexity of planning for tomorrow,” said Lorna Sabbia, head of Retirement and Personal Wealth Solutions at Bank of America. “At Bank of America, we are committed to working with our institutional clients to provide financial wellness and benefits offerings that address the evolving needs and expectations of their workforce. Personal Retirement Strategy is another example of how we are fulfilling our commitment of partnering with employers to help employees achieve their financial goals.”
Personal Retirement Strategy provides all plan participants—regardless of age or income—with a retirement plan and personalized investment strategy through an intuitive digital experience with full mobile and online capabilities. Key features include:
- Interactive Digital Experience: ability to determine how certain decisions could affect retirement with flexible tools and guidance that allow for customization of the user experience
- Goals Based Planning: guidance in creating a retirement income strategy based on the employee’s holistic financial picture and a personalized, goals-based asset allocation recommendation
- Actionable Insights: aids participants in understanding their available benefits, offers actionable steps they can take to prepare and help stay on track toward a financially secure retirement
- Investment Management: a new discretionary managed account service, Merrill Managed, that offers personalized investment management for an additional fee, based on Merrill’s well-established wealth management planning solutions, and portfolio construction from the company’s Chief Investment Office
Merrill will act as a 3(21) fiduciary for participants using Personal Retirement Strategy, and a 3(38) fiduciary with respect to the plan assets enrolled in Merrill Managed. Participants can elect to invest their 401k assets themselves, or have a portfolio created and managed on their behalf in Merrill Managed.
“Today’s workforce is especially concerned about retirement, but employees often lack the guidance and tools that are essential to develop a plan. With Personal Retirement Strategy, we are connecting employees to the personalized retirement income planning resources they need to take charge of their financial future,” said Tom Matarazzo, Institutional Retirement Advisory Programs executive at Bank of America. “This new program makes retirement planning clearer and more approachable for plan participants.”
Bank of America’s Retirement & Personal Wealth Solutions organization serves more than 26,000 companies of all sizes and more than 5.7 million employees as of December 31, 2020. Bank of America offers institutional client employees a range of financial benefit programs and solutions to help them pursue their financial future.
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