The bank on Monday said it started a retirement and strategic solutions group and appointed
The focus on retirees reflects a broader trend in financial services, said
And competition for those investors is heating up among trust banks such as
"Over the next decade, this demographic trend should become one of the dominant strategic trends for financial services companies," Mosby wrote in an email. "Those that are positioned to participate in this increased demand should outperform while those that miss out could struggle."
In less than three years, more than half of American individuals' assets will be in retirement transition or retirement distribution,
The bank will combine expertise in retirement and insurance investments, and part of its strategy will look to nontraditional investments, such as reverse mortgages, for households that are behind the curve on what they need to retire, said
"I think there's an enormous opportunity to help individuals right on the cusp of retirement, to make sure they enjoy the retirement that they've been planning for a long time," Mustin said.
It is too soon to say what alternative investments might be offered, Mustin said, but Gordon specialized the reverse mortgage market for
A reverse mortgage allows a homeowner to borrow money against the value of a home while still living there. No repayment of the mortgage is required until the borrower dies or the home is sold. Banking regulators are watching closely amid concern that reverse mortgages come with expensive fees, high rates and can saddle heirs with financial burdens to pay back the mortgage or risk foreclosure.
Reverse mortgages aren't for everyone but could be part of a package of options for retirees who need income, said BNY spokesman
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