Bank of America announced the launch of 401k Pay on November 13, 2025. The platform will be available to corporate plan sponsors and participants on November 17, 2025, and it brings together record‑keeping, deposit options and advisory tools into a single, no‑incremental‑charge hub that lets plan participants convert 401(k) assets into retirement income more efficiently.
The move is part of the bank’s broader digital‑innovation strategy. 401k Pay builds on the existing Personal Retirement Strategy program and leverages the bank’s consolidated mobile and web apps, which have already unified banking, investing and retirement services into one personalized experience. By offering a free, integrated solution, the bank aims to capture a larger share of the growing retirement‑planning market and deepen relationships with both new and existing corporate clients.
Participants stand to benefit from a streamlined process that addresses the key concerns highlighted in the Bank of America Workplace Benefits Report—retirement education, planning and income generation. Employers can use the platform to improve employee financial outcomes, which in turn can boost productivity, job satisfaction and retention. Lorna Sabbia, Head of Workplace Benefits, said the platform was developed hand‑in‑hand with corporate clients who wanted a retirement‑income solution that could be added to their benefits package without extra cost.
Tom Matarazzo, Managing Director of Institutional Retirement Advisory Programs, noted that 401k Pay is designed to help participants plan how much 401(k) income is needed in retirement and to draw on those funds appropriately. The platform’s real‑time recalibration and cost‑of‑living adjustments give users a digital tool that is “a leader in the marketplace,” according to Matarazzo.
Bank of America’s recent earnings reinforce the strategic value of the launch. In Q3 2025 the bank reported earnings per share of $1.06 versus a consensus of $0.95, and revenue of $28.09 billion versus $27.48 billion, both beating expectations. The beat was driven by strong performance in investment banking and trading, disciplined cost control and a favorable mix of high‑margin retail and corporate banking services. The company’s guidance for the remainder of the year remains positive, reflecting confidence that its digital expansion—including 401k Pay—will continue to support revenue growth and margin expansion.
The retirement‑planning landscape is becoming increasingly digital, and 401k Pay positions Bank of America to compete more effectively against other financial‑services firms that are also launching similar platforms. By integrating retirement income planning into its existing suite of digital tools, the bank can offer a differentiated value proposition that aligns with the growing demand for comprehensive, user‑friendly retirement solutions.
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