BlackRock unveils its answer to the looming retirement crisis
BlackRock has officially launched a new product to help American workers take on the all-encompassing problem of retirement security.
The asset management giant announced Wednesday that it has launched a new retirement income solution, LifePath Paycheck, now accessible within defined contribution plans.
This innovative approach, which combines a target date fund strategy with the option of guaranteed income, is available to plan participants beginning at age 59 and a half. The guaranteed income is facilitated through annuity contracts issued by Equitable and Brighthouse Financial.
The asset management giant said its LifePath Paycheck aims to offer a reliable, paycheck-like income in retirement, addressing common concerns among American workers about financial security in their later years. To complement this offering, BlackRock has developed MyLifePath, a digital tool designed to illustrate the potential future income based on current savings.
Several prominent employers, including Avangrid, Adventist HealthCare Retirement Plans, and the Tennessee Valley Authority Retirement System, have already adopted LifePath Paycheck as the default option in their employee retirement plans. To date, 14 plan sponsors overseeing $27 billion in target date assets have committed to integrating this solution into their offerings, potentially benefiting half a million employees.
“We believe LifePath Paycheck will one day be the default retirement investment strategy, providing access to a predictable, paycheck-like income stream that can help improve the quality of life for millions of Americans in retirement,” Larry Fink, Chairman and CEO of BlackRock, said in a statement unveiling the new product.
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