• Associated Press via Miami Herald, Friday, November 9, 2007 12:15 PM

Bank of America is rolling out a new, $35 million ad campaign to push its retirement programs as it delves into a business now dominated by specialty financial services companies. The effort, which is set to begin Sunday, targets about 16 million Bank of America customers near or already in retirement. It initially focuses on the bank's individual retirement accounts but will morph into a broader effort.

"Americans' retirement needs are continuing to intensify due to longer life expectancy, rising health care costs and the lack of comprehensive, readily accessible guidance," says Jeff Carney, president of Bank of America's retirement unit. "When you look at the size of the mass market, they are facing tremendous complexity in solving their life needs." Along with the standard 401(k)s and IRAs, the bank has a wealth management business that provides services such as estate and trust services.

But Scott MacDonald, head of the Southwest Graduate School of Banking Foundation at Southern Methodist University in Dallas, says B of A faces hurdles in capturing new customers in its retail business: "Most people under the age of 35 probably do not see a bank in the same way that they may see a Vanguard or some institution like that," he says. "The challenge that banks continue to face is trying to get people who are happy where they are to move their stuff."

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