Larry Fink, whose company manages $10 trillion in assets (half of which are for retirement), challenged government and business leaders to come together to fix a looming retirement crisis brought on by medical breakthroughs that have boosted longevity.
What they’re saying: “Maybe once a decade, the U.S. faces a problem so big and urgent that government and corporate leaders stop business as usual. They step out of their silos and sit around the same table and find a solution,” said Fink in his annual letter to investors.
- Efforts to fix the U.S. retirement system should draw on other countries’ experiences. In the Netherlands, for example, the retirement age automatically adjusts with changes in life expectancy.
What’s next: Fink used the occasion to announce a new retirement product that Blackrock will debut in April to 14 of its plan sponsors representing 500,000 workers. The product, called LifePath Paycheck, features an annuity option that Fink says could revolutionize retirement planning.
The CEO cited a BlackRock survey showing that two decades after retiring people still had 80% of their pre-retirement money on hand — a sign that “even people who know how to save for retirement still don’t know how to spend for it.”