American Retirees To Soon Gain Reliable Income Stream Via BlackRock Fund Amid Savings Crisis

By Thea Felicity

Mar 26, 2024 12:30 PM EDT

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Chairman and CEO of investment management company BlackRock, Larry Fink, made a bold initiative in his latest annual letter, calling for urgent action to address the retirement crisis in the United States. 

In a statement to PI Online, Fink stressed the importance of working together on a large scale, comparing it to a major national effort like the mission to land a man on the moon. He emphasized the urgency of securing a dignified retirement for future generations.

Given BlackRock's significant presence and influence in the financial industry, managing assets totaling over $10 trillion, Fink's statements are taken seriously and hold considerable influence.

To add, Fink recognized that while his investment management company doesn't claim to have all the solutions, its role in serving millions preparing for retirement has offered valuable insights. 

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How The Investment Management Company Will Address US Retirement Crisis

In the upcoming months, BlackRock intends to reveal valuable partnerships and initiatives that will stimulate a wider discussion of US retirement security.

One of the key initiatives highlighted by Fink is the upcoming launch of LifePath Paycheck, a new target-date fund with an annuity option designed to address the challenges faced by retirees. 

The fund, set to debut in April, aims to provide retirees with a reliable income stream, addressing the paradox of longer lifespans without sufficient financial resources to support them.

Fink referenced a BlackRock survey indicating that retirees, despite having enough savings, encounter difficulties in financial management, retaining 80% of their pre-retirement funds twenty years after retirement. 

In response, LifePath Paycheck will introduce an annuity option to provide retirees with a steady income.

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