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.
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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.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
