# What is CoRI™?

CoRI™ is powered by the CoRI Retirement Indexes (“CoRI Indexes”), which are a series of real-time, age-based indexes designed to help Americans measure retirement readiness and plan for future income goals. Each CoRI Index provides a daily “level” that can be used to estimate, as early as 10 years before retirement, how much annual lifetime retirement income your current retirement savings could generate.

By using the CoRI Indexes as a benchmark, investors can translate between retirement savings account balances and future income potential quickly and easily.

1. ## How do the CoRI Indexes help me?

The CoRI Indexes seek to track the estimated cost of a dollar of future retirement income. By one dollar of future retirement income, we mean one dollar per year beginning at age 65, lasting as long as you live. For example, a CoRI Index level of \$13.54 means that a dollar of life contingent income beginning at age 65 (or now if 65 and older) would cost \$13.54 today.

The power of the CoRI Indexes is that they are based on real world, real time data. The CoRI Indexes provide useful and actionable insight into your retirement readiness. They also help you to measure how well you’re doing relative to achieving your retirement income goal and can help put you in a better position to take corrective action.

For additional information on the CoRI  Indexes - including daily Index levels, fact sheets, and methodology, visit the CoRI Index methodology site.

2. ## How do I use the CoRI Indexes?

You can go to www.blackrock.com/cori or do some easy math. For example, let's say you have saved \$750,000 and will turn 65 in the year 2018. Simply divide \$750,000 by today's CoRI Index 2018 level (for example, \$16.35), and you find that your savings may fund \$45,871 in estimated annual income starting at age 65 and lasting for the rest of your life.

\$750,000 ÷ \$16.35 = \$45,871
Current Retirement Savings CoRI Index 2018 level Estimated Lifetime Annual Income in Retirement

For illustrative purposes only. CoRI Index levels are subject to change.

3. ## What is my CoRI Index level today?

CoRI uses your age-appropriate CoRI Index level to provide an estimate of how much money you need today to generate each dollar of annual income in retirement. Because the CoRI Indexes take into account current interest rates, inflation expectations, life expectancy and other factors, levels may change on a daily basis. CoRI Index daily levels are as follows:

Current Age CoRI Index Name Index Level*
74 CoRI Index 2006 \$14.83
73 CoRI Index 2007 \$15.44
72 CoRI Index 2008 \$16.05
71 CoRI Index 2009 \$16.66
70 CoRI Index 2010 \$17.26
69 CoRI Index 2011 \$17.86
68 CoRI Index 2012 \$18.45
67 CoRI Index 2013 \$19.03
66 CoRI Index 2014 \$19.62
65 CoRI Index 2015 \$20.20
64 CoRI Index 2016 \$20.79
63 CoRI Index 2017 \$20.14
62 CoRI Index 2018 \$19.49
61 CoRI Index 2019 \$18.84
60 CoRI Index 2020 \$18.09
59 CoRI Index 2021 \$17.36
58 CoRI Index 2022 \$16.69
57 CoRI Index 2023 \$16.10
56 CoRI Index 2024 \$15.46
55 CoRI Index 2025 \$14.79

*As of 11/25/2015

4. ## What should I do with this information?

With one quick and simple calculation, CoRI helps give you a clearer understanding of how your retirement savings could translate into retirement income giving you a starting point for conversations with your financial advisor. Together, you can discuss any changes you need to make in your savings or investing strategy to help meet your goals. Then, if you're ready to retire, you can discuss options for purchasing an annuity or accessing other retirement income options.

5. ## Why is CoRI different than other means of calculating retirement income?

Most retirement calculators project asset values into the future using assumptions that are sometimes difficult to understand. CoRI brings your future spending liability to the present, offering information that is easy to understand.

CoRI is unique because it is powered by the CoRI Indexes, which are calculated based on objective real-world factors, like the number of years until you reach age 65, current interest rates, and inflation expectations.

6. ## What goes into calculating each CoRI Index level?

Each CoRI Index level reflects the estimated cost of one dollar of annual lifetime income in retirement. The Index level is calculated using five types of real-world, real-time data:

1. Starting Level: CoRI Index levels start at \$1 a year, every year, starting at age 65. In other words, they start at \$51 to account for payments through age 115. Once you turn 65, this will decrease by \$1 a year. For example, if you are age 66, your CoRI Index level starts at \$50. CoRI Index levels will then go up or down, based on other factors, including inflation and interest rates.
2. Inflation: The cost of living will go up and you need to preserve your purchasing power. The CoRI Index level prices in an annual cost of living adjustment beginning at age 65.
3. Risk: The promise to give you \$1 in the future involves investment risk. Current market information about what insurers are charging to manage similar risk impacts your CoRI Index level.
4. Interest Rates: Interest rate changes can cause daily fluctuations in your CoRI Index level.
5. Life Expectancy: Because we won't all live to 115, the CoRI Index level is reduced using actuarial calculations similar to ones used by Social Security, pension plans and insurance companies.
7. ## Does the CoRI Index level change? How often?

Just as the S&P 500 Index tracks changes in certain stock prices over time, each CoRI Index seeks to track the changes over time in the estimated cost of future retirement income. Because the CoRI Indexes take into account current interest rates, inflation expectations, life expectancy and other factors, levels may change on a daily basis.

For additional information on the CoRI Indexes - including daily Index levels, fact sheets, and methodology, visit the CoRI Index methodology site.

8. ## Why should I check my CoRI Index level regularly?

You can check your CoRI Index level anytime you want at www.blackrock.com/cori.

By keeping up with changes to your CoRI Index level, you can have a better understanding of what, if any, adjustments you may want to consider, including your investment direction, retirement savings strategy or planned retirement date. Knowing how your CoRI Index level changes over time can help make retirement planning conversations with your financial advisor more productive.

9. ## Why are the CoRI Indexes only available for certain ages?

The CoRI Indexes are a uniquely constructed series of indexes designed for investors in the pre- to early retirement phase. Today the series includes twenty indexes, one each for people from age 55 to age 74. Each index takes into account age-specific factors, in order to provide a real-time metric that you can use to estimate the annual lifetime income your savings may generate once you retire.

While the CoRI Indexes are directly applicable for individuals in these pre- and early-retirement years, they can be used as a helpful metric for investors of any age looking to educate themselves about current estimates regarding the cost of future retirement income. Visit www.blackrock.com/retirement for education and actions investors can take to better prepare for retirement.

10. ## What happens in the year designated in a CoRI Index’s name?

When a CoRI Index reaches its reference year (i.e., in the year that you turn 65), you may be in a position to convert some or all of your savings into a lifetime income stream. Talk to your financial advisor about the best ways to earn income in retirement from your investments. You will still be able to use your CoRI Index for an additional ten years to monitor your estimated lifetime retirement income potential in real-time.

Remember, the CoRI Indexes are not an investment product and don’t deliver a guaranteed income stream. The indexes provide an estimate of the retirement income that your savings may generate, which is a great start for you and your advisor to engage in productive discussions about building a retirement income plan.

11. ## I don't plan to retire at age 65. Do the CoRI Indexes have any relevance for me?

Yes. Prior to 65 the CoRI Index levels seek to estimate the current cost of future retirement income, beginning at age 65. For individuals 65 years old and older, the index levels are intended to represent the median price of an immediate annuity for individuals turning 65 in the year referenced in the index name. For instance in 2018, the CoRI Index 2017 will indicate the median price of an immediate annuity for those who turned 65 in the year 2017. Knowing the price of lifetime income on a real-time basis can be very useful for those in their first years of retirement.

For individuals intending to retire prior to age 65 the CoRI Index level will understate income needs, but percentage changes in the index level itself will be a useful indicator of overall changes in the cost of future income those who plan to retire before 65.

12. ## Can I invest in a CoRI Index?

As with any index, you can’t invest in the index directly, but you can invest in a fund that tracks the index. You can also use your CoRI Index level to estimate your annual retirement income based on your current savings amount.

Explore our website for more information on investment options that track the CoRI Indexes.

Sample Portfolio Scenarios - Assumptions and Methodology:

The sample portfolios are based on the asset class allocations as shown when clicking on the information icon adjacent to the “Sample portfolios” header in the tool. See “About the Asset Classes” below for descriptions of the asset classes. The asset classes were selected to broadly reflect the types of core equity and fixed income exposures that are commonly included within diversified portfolios. The “Moderate with CoRI exposure” sample portfolio replaces the “Moderate” sample portfolio’s fixed income allocation with CoRI exposure and is intended to show the potential role of including CoRI exposure in a portfolio. Other asset classes not considered in the portfolio illustrations may have characteristics similar or superior to those included in the analysis.

The additional required savings is derived by calculating the savings rate that will make your estimated annual retirement income equal your desired annual retirement income, within the range shown, at age 65.  This calculation considers your current retirement savings, the assumed return of the sample portfolio, and the assumed return of additional annual savings over time. The assumed return of the sample portfolio is calculated using each applicable asset class’s assumed return as set forth below (see Long-term Capital Market Assumptions).

Annual Retirement Income Range

The annual retirement income range is derived by growing your current retirement savings and additional annual savings over time by the assumed return of the sample portfolio in order to calculate a minimum, maximum, and average projected portfolio balance at age 65. The minimum and maximum balances reflect the assumed volatility (risk) of the applicable asset classes in the sample portfolio (see Long-term Capital Market Assumptions).  The annual retirement income range is derived by dividing these three projected portfolio balances by the CoRI Retirement Index level that corresponds to your age, and applying a 68% confidence level, which reflects an assumption that your estimated annual retirement income at age 65 is expected to fall within the range shown +/-1 standard deviation. Standard deviation is a statistical measure used to estimate how dispersed calculation results are, in relation to an average or expected value.

Long-term Capital Market Assumptions:

 Asset Class Benchmark AnnualizedAssumed Return Annualized Assumed Risk US Large/Mid Cap Equities Russell 1000 Index 7.25% 15.38% US Small Cap Equities Russell 2000 Index 7.96% 19.65% International Equities MSCI ACWI ex-US Investable Market Index 7.98% 18.18% US Bonds Barclays U.S. Aggregate Bond Index 3.00% 3.74% CoRI exposure BlackRock CoRI Retirement Indexes 4.05% 9.50%

BlackRock typically reviews the assumptions quarterly. These assumptions are provided for illustration purposes only, are subject to change as subsequent conditions vary, are not a prediction of future results and are subject to inherent limitations. “Assumed” return and risk estimates are subject to uncertainty and error. Assumed returns for each asset class can be conditional on economic scenarios; in the event a particular scenario comes to pass, actual returns could be significantly higher or lower than forecasted, so an investor should not expect to achieve returns similar to the analysis shown herein. References to assumed returns are not promises or even estimates of actual returns a client portfolio may achieve.

US Large/Mid Cap Equities are based on the Russell 1000 Index, which is designed to measure the performance of the large- and mid-capitalization sectors of the U.S. equity market.

US Small Cap Equities are based on the Russell 2000 Index, which is designed to measure the performance of the small-capitalization sector of the U.S. equity market.

International Equities are based on the MSCI ACWI ex-US  Investable Market Index, which is designed to measure the performance of the large, mid- and small- capitalization sectors of developed and emerging markets countries.

US Bonds are based on the Barclays U.S. Aggregate Bond Index, which is designed to measure the performance of the total U.S. investment-grade bond market.

CoRI exposure is based on the BlackRock CoRI Retirement Indexes, which are a suite of fixed income indexes designed to track the estimated cost of future lifetime retirement income.

Asset allocation and diversification strategies do not assure a profit and may not protect against loss. The two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. Small-capitalization companies may be less stable and more susceptible to adverse developments, and their securities may be more volatile and less liquid than larger capitalization companies.

This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the use or suitability of the indexes or (ii) any security in particular. Investors should consult their financial advisor to evaluate their investment needs.

The CoRI Retirement Indexes and the CoRI tool do not guarantee future income or protect against loss of principal. There can be no assurance that an investment strategy based on the CoRI Retirement Indexes or the CoRI tool will be successful. Indexes are unmanaged and one cannot invest directly in an index.

Investing involves risk, including possible loss of principal.

The CoRI Retirement Indexes and data are subject to change. Data shown is for informational purposes only and does not represent an actual account. The CoRI tool is based on CoRI Retirement Index levels that are updated daily, so results may vary with each use and over time. The CoRI Retirement Indexes and CoRI tool do not reflect the fees, expenses and cost that may be associated with an annuity or any other retirement income product that an individual may purchase, or any assumption that such a product will be available for purchase at the time of retirement. Actual investment outcomes may vary. Although the CoRI tool provides an estimate of the amount of money you need today for every dollar of annual income you want in retirement, this estimate is not a guarantee. A number of factors may contribute to variations in retirement income.

The CoRI Retirement Indexes are maintained by BlackRock Index Services, LLC (the “Affiliated Index Provider”), a subsidiary of BlackRock, Inc., that designs, sponsors and publishes indices for use in portfolio benchmarking and portfolio management. While the Affiliated Index Provider publishes descriptions of what the CoRI Retirement Indexes are designed to achieve, the Affiliated Index Provider does not provide any warranty or accept any liability in relation to quality, accuracy or completeness of data in respect of the CoRI Retirement Indexes, and does not guarantee that the CoRI Retirement Indexes will not deviate from their stated methodologies. The Affiliated Index Provider does not provide any warranty or guarantee for Affiliated Index Provider errors.

Prepared by BlackRock Investments, LLC (“BRIL”), member FINRA. BRIL is a subsidiary of BlackRock, Inc.