The BlackRock CoRI® Retirement Indexes

Overview

One of the biggest financial concerns for investors ages 55 to 74 is this: "Will I have enough to live on for retirement?" The BlackRock CoRI^® Retirement Indexes ("CoRI Indexes") can help answer this question with more insight than vague rules of thumb. The CoRI Indexes are designed to provide an actionable, objective estimate of the annual retirement income an investor’s current savings could generate in retirement. By using the CoRI Indexes as a benchmark for retirement portfolios, individuals can gain critical insight into their annual retirement income potential and strategies to save, invest and spend to meet their goals.

What are the CoRI Indexes?

The CoRI Indexes are a series of age-based U.S. bond indexes. Each CoRI Index seeks to track the estimated cost of annual retirement income beginning at age 65. An individual should use the index that corresponds to the year he or she turns 65. Changes in the daily price, or "level," of each CoRI Index reflect the performance of a specific bond portfolio. BlackRock’s retirement investing professionals select those bonds – primarily investment grade corporate bonds, U.S. government bonds and U.S. Treasury STRIPS – to track what $1 in today’s retirement savings could provide in estimated annual lifetime income beginning at age 65. Estimated income includes a cost of living adjustment (COLA) in an effort to preserve purchasing power. While there is a specific index for each age from 55 to 74, the CoRI Indexes can still be helpful to investors of any age trying to learn about current estimates for the cost of generating lifetime retirement income — and the challenges involved with meeting those income goals.

How are the CoRI Indexes constructed?

The CoRI Indexes incorporate cash-flow modeling and actuarial practices to estimate the cost of annual retirement income, coupled with liability-driven investment techniques, to build a corresponding bond portfolio. This process takes into account many of the factors annuity providers use for estimating costs and delivering income, such as life expectancy, interest rates and inflation expectations. These features mean the CoRI Indexes can be used as a risk-free rate for retirement, providing an efficient way to measure the combined potential impact of investment and longevity risks on an individual’s retirement income potential. Using the CoRI Indexes, investors – quickly and easily – can evaluate retirement readiness and accumulation strategies in the years leading up to age 65, and later, help create a strategy for retirement income.

The CoRI Retirement Indexes 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 will be successful. Indexes are unmanaged and one cannot invest directly in an index.

This information is the property of BlackRock, Inc. and /or its subsidiaries (collectively, "BlackRock"). It is provided for informational purposes only. The CoRI Retirement Indexes are supported by proprietary BlackRock research about annuity pricing and income generation; the methodology of the CoRI Retirement Indexes are supported by assumptions about the relationship between annuity pricing and fixed income markets, the accuracy of third party reporting and compilation of current annuity pricing, and the predictive nature of the components of the methodology. There is no assurance that these assumptions are correct or will perform in the manner that they have in the past. Nor may it be used in the creating, writing, offering, trading, marketing or promotion of any financial instruments or products. Although BlackRock obtains information from sources which BlackRock considers reliable, neither BlackRock nor its subsidiaries or any other third party involved in, or related to, compiling, computing or creating the information guarantees the accuracy and/or the completeness of any of this information. All BlackRock indices and data are the exclusive property of BlackRock and may not be used in any way without the express written permission of BlackRock.

Reliance upon information in this material is at the sole discretion of the reader. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information or BlackRock index or other product or service referenced herein constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy. Further, none of the Information or any BlackRock index is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

The CoRI Retirement Indexes are maintained by BlackRock Index Services, LLC (the “Affiliated Index Provider”), a subsidiary of BlackRock, Inc. 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.

©2020 BlackRock, Inc. All rights reserved. BLACKROCK, CoRI, and the CoRI logo are trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

For additional information, usage and licensing opportunities for the CoRI Indexes, please contact CoRI@blackrock.com

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