BlackRock joins the retirement income fray with Generation Life deal

Investment Magazine

The announcement of a partnership between BlackRock and Generation Development Group goes some way to addressing a question that Larry Fink, the CEO of the world’s largest asset manager, pondered in his 2024 letter to investors: how to get retirees to spend all the money they’d saved in their pension plans over the course of their lives. The answer for BlackRock was product: LifePath Paycheck, a retirement income solution that integrates target-date fund investments with lifetime income annuities. Starting at age 55, a portion of participants’ portfolios is allocated to an asset class BlackRock dubbed “lifetime income,” which can later be converted into a guaranteed income stream upon retirement .

And Fink was ambitious for BlackRock to bring its new retirement nous to the rest of the world. “We’re talking about a revolution in retirement,” Fink writes. “And while it may happen in the U.S. first, eventually other countries will benefit from the innovation as well. At least, that is my hope. Because while retirement is mainly a saving challenge, the data is clear: It’s a spending one too.”

The rest of this article can be found at investmentmagazine.com.au.