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In his annual letter to corporate investors, BlackRock CEO Larry Fink called on politicians and business leaders to come together to address the retirement crisis.
Mr. Fink, 71, emphasized that Millennials and Generation Z are worried about their retirement finances, saying that their generation, the baby boomer generation, is “taking care of themselves to the detriment of those who will come.” “We are right to believe that our focus has been on people’s economic well-being.” Next. “
“As a society, we put a lot of energy into helping people live longer lives,” he wrote. “But not a fraction of that effort goes into helping people pay for those extra years.”
Larry Fink, BlackRock Chairman and CEO Photographer: Victor J. Blue/Bloomberg via Getty Images
In his letter, he points to a March 2023 report showing that the Social Security Administration will not be able to pay people their full benefits by 2034.
Fink writes that the message workers are currently receiving from governments and companies is: “You’re on your own.”
“We have an obligation to change that before my generation completely disappears from corporate and political leadership positions,” Fink wrote.
Related: Retirement crisis is upon us — compare your savings with those of your peers
The letter also proposes a reassessment of the standard retirement age.
“No one should have to work longer than they would like,” Fink wrote. “But I think it’s a little crazy that our core ideas about the appropriate retirement age of 65 have their origins in the Ottoman era.”
Fink talks about how to encourage people to work beyond the age of 65, rather than taking a step back when they receive their retirement benefits, and as people who have a lot to offer rather than being ready for retirement. I’m suggesting we talk about how to treat that demographic differently.
Related: Workplace experts say this retirement trend is helping people ease their ‘financial anxiety’ and avoid ‘loss of purpose’
Recent data from the Employee Benefits Research Institute (EBRI) shows that even though workers are more likely to say they will retire at age 70 or older, the median age of retirees is 62 and the average is 65. I’m 20 years old.
Almost half of retirees who left their jobs sooner than they wanted to leave said they did so because of health issues, disabilities, or shifts at work.
Of those who retired earlier than planned, only 35% did so because they were financially prepared for retirement.
Related: Can you afford to retire? Here’s how much Americans spend every day in retirement
Fink also said BlackRock will announce partnerships and initiatives in the coming months to ask policymakers, investors, retirees and other stakeholders how the average retirement age should change.
Another solution proposed by Fink was to automate investing and give retirees more confidence in spending their savings.
BlackRock, headquartered in New York, is the world’s largest asset manager, with $10 trillion in assets under management as of January. In less than 40 years, the company has grown from a start-up to an industry leader, and more than half of the assets it manages are for retirement, according to Fink’s letter.
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