(Reuters) – BlackRock CEO Larry Fink has urged the government and the private sector to ensure Americans have enough money to retire and said the world’s largest asset manager would launch a product next month to address the issue.
The “LifePath Paycheck” will go live in April, with 14 retirement plan sponsors aiming to make it available for 500,000 employees as defined contribution plans.
“America needs an organized, high-level effort to ensure that future generations can live out their final years with dignity,” Fink said in an annual letter to investors on Tuesday.
BlackRock manages the largest retirement funds in the U.S.
Fink said data from the U.S. Census Bureau’s survey of consumer finances in 2022 showed nearly half of Americans aged 55 to 65 reported not having a single dollar saved in personal retirement accounts.
“Put simply, the shift from defined benefit to defined contribution has been, for most people, a shift from financial certainty to financial uncertainty,” he added.
Defined contribution plans are retirement plans where the employer, employee, or both make regular contributions of specified amounts.
(Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar)
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