U.S. Retirement Market Sees New Managed IRAs, Annuities, ETFs, and AI Tools
Recent developments in the U.S. retirement and investment markets spotlight several product innovations and strategic partnerships among key financial services firms. Mutual of America Financial Group has introduced the MoA Managed Individual Retirement Account, a fully managed IRA that integrates personalized portfolio management through Morningstar Retirement Manager, recordkeeping by IRALogix, and portfolio management via Envestnet. This solution tailors investment strategies based on individual client data such as age, risk tolerance, and retirement timelines, offering quarterly rebalancing and retirement drawdown guidance.
Lincoln Financial Group added to its registered index-linked annuity (RILA) offerings with the Lincoln Level Advantage 2 Income annuity, which includes income benefits and an optional estate protection feature. This product launch expands Lincoln's presence in the RILA market, where the firm held $331 billion in end-of-period account balances as of mid-2024.
Man Group and State Street Investment Management advanced the ETF market with new actively managed fixed income and target maturity bond ETFs. Man Group debuted the Man Active High Yield ETF and Man Active Income ETF, providing U.S. investors access to a substantial credit platform emphasizing high-yield and below-investment-grade securities. State Street introduced two ETFs focused on corporate and municipal bonds with specific maturity targets, employing an active approach to yield maximization and risk management.
Betterment at Work partnered with First Citizens Wealth to extend retirement plan solutions to small- and mid-sized businesses, combining Betterment's digital platform and recordkeeping with First Citizens' advisory services. This collaboration enhances plan customization, compliance functionality, and payroll integration.
Vanguard launched its first active fixed income ETF, the Vanguard High-Yield Active ETF, offering broad exposure across high-yield credit quality spectrums with a competitive expense ratio. Additionally, Cetera Financial Institutions formed a strategic partnership with Peoples Bank & Trust Company to replace its previous provider, emphasizing enhanced client service and rural community focus.
In the public sector, CalSavers Retirement Savings Program implemented CalSavvy, the industry's first AI-powered chatbot for state-run auto-IRA programs. Developed by Ascensus, this tool supports over 600,000 California employers with account management and retirement planning assistance in English and Spanish, illustrating advances in digital retirement administration and compliance support in state-mandated environments.