BofA rolls out retirement income portfolios

investmentnews.com:

Bank of America unveiled a new shelf of investment products to help its clients address the thorny problem of achieving sustainable retirement income.

The new suite of income-focused portfolios – offered through Merrill, its investment division – is aimed at providing BofA clients with a steady stream of income during their retirement years.

“For many, the fear of outliving retirement assets can be overwhelming,” Matt Gellene, BofA’s head of consumer investments and employee banking and investments, said ina statement. “Having a predictable monthly income replacement vehicle helps retirees enjoy this phase of life with greater confidence in their long-term financial security.”

The bank has made the portfolios, which are designed to provide predictable income over a 25-year period, available to clients through Merrill’s robo-advisory program, Merrill Guided Investing, as well as its Merrill Guided Investing with Advisor platform.

To help align with investors’ specific time horizon, risk tolerance, and financial objectives, the income portfolios – run by Merrill’s chief investment office – cover a spectrum of strategies ranging from stable income to a blend of income and growth.

Clients with a minimum of $50,000 in assets with Merrill and Bank of America also have the option to direct distributions from the portfolios to a designated BofA checking, saving, or investment account.

The bank is rolling out the new offerings after the 2024 Bank of America Workplace Benefits Report showed dwindling retirement confidence among US workers.

Over the two-year period between 2021 and 2023, the proportion of American employees who are optimistic about their ability to shift from retirement spending to retirement saving decreased from