Bank of America is launching a new digital platform to help its customers “conveniently convert” their 401(k) retirement investment portfolios into a steady income.
Launching November 17, the tool integrates record keeping, flexible payment options, and real-time income tracking in one hub.
Why It Matters
Millions of Americans face challenges converting their 401(k) savings into stable retirement income.
Bank of America’s new digital product aims to simplify post-career financial planning.
What To Know
With approximately 70 million consumer and small business clients across the U.S., Bank of America’s launch of 401k Pay, described as a “new digital solution,” aims to address a significant gap in retirement planning resources.
This new offering is provided at no additional charge to corporate plan sponsors or participants in workplace 401(k) plans that use Bank of America’s Personal Retirement Strategy program.
According to the 2025 Bank of America Workplace Benefits Report, 36 percent of employees expressed a need for retirement education and planning, while 33 percent cited a need for guidance in generating income from their retirement savings.
With baby boomers prioritizing financial stability and younger generations facing different savings philosophies, the move to simplify the retirement income process has broad implications for American workers and the businesses that employ them.
The tool offers several integrated features:
- Consistent Income Generation: Converts 401(k) account assets into a recurring retirement income, taking into account variables such as cost-of-living adjustments, state and federal taxes, required minimum distributions, and personalized financial inputs.
- Flexible Deposit Options: Participants can choose how frequently they receive payments and in which account—either within or outside Bank of America—they want those deposits made.
- Real-time Recalibration: Users receive ongoing transaction monitoring and income tracking, allowing adjustments to payouts as individual retirement needs or external factors change over time.
Bank of America says that the platform was developed in cooperation with its corporate clients and aims to “directly tackle participant concerns” by streamlining how employees transition their retirement savings into usable income.
What People Are Saying
Lorna Sabbia, head of workplace benefits at Bank of America, said: “401k Pay was developed hand-in-hand with our corporate clients who wanted to offer their employees a retirement income solution. Including retirement income resources like 401k Pay as part of their workplace benefits offerings provides employers with the opportunity to improve financial outcomes for their employees and can help drive real business results – including helping to improve productivity, employee job satisfaction and retention.”
Tom Matarazzo, managing director of institutional retirement advisory programs & financial wellness solutions at Bank of America, said: “Retirement readiness and the ability to plan for income in retirement are top concerns among plan participants. 401k Pay is designed to help directly address participant concerns – from planning how much 401(k) income is needed in retirement to drawing on those funds appropriately – with a digital solution that is a leader in the marketplace.”