Drew Dixon
Florida is known as a state where many Americans scurry to settle down and retire, and a new retirement program by the BlackRock investment and risk management company will pique the interest of many of those retirees.
BlackRock officials announced a new program called LifePath Paycheck. Right now, it’s only offered through employers to their workers. BlackRock officials said they have 14 companies planning to use the LifePath Paycheck program. They hope to expand the offering to individuals soon.
The investment strategy automatically adjusts to a targeted retirement year. BlackRock leaders say the program is a new approach to retirement income. It’s designed to provide guaranteed income through a target date for those investing through the program.
Plan participants will have the option to access the guaranteed income as early as age 59-and-a-half-years-old by purchasing annuity contracts.
“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,” said Larry Fink, Chairman and CEO of BlackRock.
BlackRock officials said the program was instituted as more Americans are expressing anxiety about retirement finances. According to a BlackRock study, 60% of workplace savers say they’ll outlive their retirement savings. Another 80% say that anxiety negatively impacts their mental health and about 90% say having guaranteed retirement income would help on both fronts.
The new program, which distributes retirement savings accounts similar to a paycheck, is an extension of BlackRock’s foundation.
“BlackRock pioneered the first target date fund over thirty years ago — and LifePath Paycheck represents the next phase of BlackRock’s leadership in retirement,” said Nick Nefouse, Global Head of LifePath at BlackRock. “We continue to develop innovative solutions for Americans that are affordable, easy to use, and can provide more economic security to retirees.”
