BlackRock’s Fink talks U.S. retirement crisis, announces launch of ‘LifePath Paycheck’

(Reuters) – BlackRock Chief Executive Larry Fink urged the government and private sector to ensure Americans have enough money to retire and said the world’s largest asset manager will launch a product next month to address the issue. .

“LifePath Paycheck” will go live in April, and 14 retirement plan sponsors aim to offer it as a defined contribution plan to 500,000 employees.

“The United States needs an organized, high-level effort to ensure that future generations can live out their final years with dignity,” Fink said in his annual letter to investors on Tuesday.

BlackRock manages the largest U.S. pension fund

Fink said data from the U.S. Census Bureau’s 2022 Survey of Consumer Finances shows that nearly half of Americans ages 55 to 65 say they don’t have a dollar saved in an individual retirement account.

“Simply put, for most people, the move from defined benefit to defined contribution is a move from financial certainty to financial uncertainty,” he added.

A defined contribution plan is a retirement plan into which the employer, employee, or both parties make regular contributions of specified amounts.

(Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar)

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