By Nick Thornton
Hoping to help address the gap between what pre-retirees
have saved and what they will need to fund their retirement, BNY Mellon has launched what it’s calling its Retirement and Strategic Solutions group.
In a statement, BNY Mellon said it is looking to add “non-traditional investment solutions” to its array of retirement service offerings.
“This unit is dedicated to meeting current retirement needs, anticipating next-generation needs and developing customized, comprehensive and transformational investment solutions for it clients,” the company said the statement.
That will mean incorporating “non-traditional and illiquid assets into portfolio construction, as well as technology innovation
," it said. Michael Gordon has been tapped to head the new unit. He previously served as managing director of Non-traditional Solutions and Special Situations for BNY Mellon. In that role, he led the bank’s Home Equity Retirement Solutions business, which purchases and securitizes reverse mortgages and advises asset managers on how reverse mortgages fit into the country’s retirement landscape.
“The retirement industry is rapidly evolving from accumulation as clients’ primary objective. In less than three years, more than 50 percent of U.S. individual assets will be in retirement transition or retirement distributions,” Gordon said in a statement.
Complicating the situation is the shortfall between those assets in transition and what will be needed to collectively fund retirement
BNY Mellon estimates a $6 trillion shortfall between what boomers have saved and what they will need.
“This is a problem that requires us as a firm — and as an industry — to work together on different approaches to solving this problem,” Gordon said.
Originally published on BenefitsPro.com