Financial institution of America is launching ‘401k Pay’, a brand new digital resolution designed to simplify how people convert their 401(okay) account property into a gradual retirement earnings. The answer, which launches on 17 November, will probably be out there at no incremental cost to the corporate’s company plan sponsors or their plan contributors.

The brand new function offers 401(okay) recordkeeping, versatile deposit choices, and monetary steering in a single centralised hub. This enables plan contributors to simply set, deposit, and observe their earnings all through their retirement.

Addressing a key worker concern

The launch of 401k Pay straight addresses a prime concern recognized in Financial institution of America’s 2025 Office Advantages Report. Based on the report, staff cited retirement training (36 per cent) and studying easy methods to generate an earnings stream in retirement (33 per cent) as two of the important thing areas the place they want monetary wellness sources from their employers.

“401k Pay was developed hand-in-hand with our company shoppers who wished to supply their staff a retirement earnings resolution,” mentioned Lorna Sabbia, head of office advantages at Financial institution of America. “Together with retirement earnings sources like 401k Pay as a part of their office advantages choices offers employers with the chance to enhance monetary outcomes for his or her staff and may help drive actual enterprise outcomes – together with serving to to enhance productiveness, worker job satisfaction and retention.”

An built-in digital resolution

The 401k Pay resolution will probably be out there to Financial institution of America shoppers who’re enrolled within the firm’s employer-sponsored ‘Private Retirement Technique’ program. It’s designed to combine all the required elements of managing retirement earnings into one platform.

Key options of the brand new resolution embrace:

• Constant Earnings Technology: The instrument helps contributors decide the retirement earnings they will generate from their 401(okay) account by contemplating their full monetary image. This consists of personalised inputs, cost-of-living changes, state and federal taxes, and required minimal distributions (RMDs).
• Versatile Deposit Choices: Individuals have flexibility within the frequency of their funds and might select to have their earnings deposited into accounts both inside or outdoors of Financial institution of America.
• Actual-time Recalibration: The hub offers ongoing earnings monitoring and monitoring, permitting for real-time changes. This permits contributors to recalibrate their earnings as their private wants and monetary targets change all through retirement.

“Retirement readiness and the flexibility to plan for earnings in retirement are prime considerations amongst plan contributors,” mentioned Tom Matarazzo, managing director, institutional retirement advisory packages & monetary wellness options at Financial institution of America. “401k Pay is designed to assist straight handle participant considerations – from planning how a lot 401(okay) earnings is required in retirement to drawing on these funds appropriately – with a digital resolution that may be a chief within the market.”