BlackRock’s Fink Discusses America’s Pension Crisis, Announces the Launch of ‘LifePath Paycheck’

(Reuters) – BlackRock CEO Larry Fink urged the government and 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 problem to grab.

The “LifePath Paycheck” goes live in April and 14 retirement plan sponsors aim to make it available to 500,000 employees in the form of defined contribution plans.

“America needs a high-level, organized 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 pension funds in the US

Fink said U.S. Census Bureau data on consumer finances in 2022 showed that nearly half of Americans ages 55 to 65 reported not having a single dollar saved in personal retirement accounts.

“Simply put, the shift from defined benefits to defined contributions has been a shift from financial security to financial insecurity for most people,” he added.

Defined contribution plans are pension plans in which the employer, employee or both make regular contributions of certain amounts.

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

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