BofA rolls out retirement income portfolios

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 in a 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 30 percent to 24 percent.

The research also revealed a drop in workers’ confidence to schedule the right frequency and amount of withdrawals in retirement (from 30 percent to 20 percent), as well as their ability to deal with unforeseen expenses (33 percent to 23 percent).

"The new income-focused portfolios are designed to help with concerns over outliving retirement savings by giving retirees the ability to control their income, while allowing for flexibility as life changes inevitably occur," said Mark Granshaw, head of consumer investments product for Bank of America.