HomeFinance NewsPersonal financeRetire Like a Rock Star: BlackRock Unveils Easy Cash Flow Solution

Retire Like a Rock Star: BlackRock Unveils Easy Cash Flow Solution


BlackRock wants to make it easier to get paycheck-like income from your retirement savings


**BlackRock Unveils Retirement Income Revolution** Americans fear running out of retirement savings more than anything.

BlackRock, the world’s largest asset manager, has introduced a new strategy called LifePath Paycheck to address this concern.

LifePath Paycheck aims to provide a steady paycheck-like income stream from retirement savings, similar to what workers receive during their working years.

This revolutionizes retirement planning, as most people now rely on defined contribution plans (e.g., 401(k)s) that lack guaranteed income.

Under LifePath Paycheck, employees start allocating a portion of their savings to lifetime income at age 55.

Regular withdrawals can begin as early as 59½ and continue until age 72.

While withdrawing income, the remaining retirement savings can continue to grow.

BlackRock’s research shows that a majority of employees worry about outliving their savings.

Other studies have identified this as the biggest retirement fear among workers over 50.

The success of LifePath Paycheck will hinge on whether employees actively participate.

Employers are encouraged to educate their employees about the benefit and the importance of opting in.

Experts believe that LifePath Paycheck may grow as popular as target-date funds.

It simplifies an aspect of retirement planning that has become increasingly complex.

Employers offering the strategy hope to attract and retain employees in a competitive market.

Financial experts advise using Social Security benefits to the fullest extent possible before considering other income options.

However, LifePath Paycheck may make it easier for retirees to delay claiming Social Security and earn a higher payout later.

Historically, participants have been reluctant to convert their retirement savings to lifetime income, but employer-provided plans like LifePath Paycheck may increase utilization.

As a result, other providers may enhance their annuity offerings, potentially leading to a significant shift in retirement income planning in the years to come.

  • Overall sentiment: positive
  • Positive

    “BlackRock, the largest asset manager, has launched a new product to help workers their retirement savings into a regular income stream that mimics the paycheck they receive during their working years.”

    “[BlackRock CEO Larry Flink] wrote of LifePath Paycheck in his recent annual letter to investors.”


    “Workers face a difficult choice in how to withdraw from lifetime investments after the broad shift from defined benefit plans like pensions to defined contribution plans like 401(k) plans.”

    “A recent BlackRock survey found 60% of employees worry they may outlive their retirement savings.”

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