The facts of lifetime income: How BlackRock is redefining retirement

May 7, 2025|BlackRock Investment Institute

Discover how BlackRock is redefining retirement by embedding lifetime income options into target date solutions for greater spending security.

Key points

01.

Demand for guaranteed retirement income is real

In our annual Read on Retirement® survey, we found that 66% of workplace savers are worried about retirement income, and 90% say guaranteed income in retirement would help.

02.

Provide clients a multitude of potential benefits

We know guaranteed income can provide more spending security – and even a spending uplift of across all income levels on average. But guaranteed income can also provide improved mental health, less vulnerability to fraud and safeguarded financial planning.

03.

Be prepared for the “mainstream moment”

Despite the demand, 70% of plan sponsors are waiting for income solutions to become more mainstream before adopting them. Their concerns include information, education, cost, choice and value. We are helping address these concerns by providing educational resources and embedding the option for lifetime income into a target-date solution.

When it comes to retirement, even diligent savers can struggle with the question of how to ensure they do not outlive their savings. BlackRock introduced LifePath Paycheck®, a target-date solution that provides the option for a guaranteed income stream for life, payable by insurers selected by BlackRock. In less than a year, it became the fastest-growing solution of its kind, reaching more than 200,000 eligible U.S. workers across six employer retirement plans.¹

Surveys and conversations with thousands of workers made it clear that the demand for guaranteed retirement income is real. Our Read on Retirement® survey found that 66% of workplace savers are worried about retirement income, and 90% say guaranteed income in retirement would help.²

We know guaranteed income can provide more spending security – and even a spending uplift of 22% across all income levels on average.³ But while getting workers comfortable with annuitizing will take time, guaranteed income can also provide improved mental health, less vulnerability to fraud and safeguarded financial planning.⁴

The “mainstream moment” is coming

Despite the demand, 70% of plan sponsors are waiting for income solutions to become more mainstream before adopting them.⁵ Their concerns include information, education, cost, choice and value.

For instance, 77% of plan sponsors feel they lack sufficient knowledge about retirement income solutions, and 86% worry that participants will struggle to understand these solutions.⁶ We are helping address these concerns by providing educational resources and embedding the option for lifetime income into a target-date solution.

The retirement system is evolving, and employers have a unique opportunity to help redefine how their employees experience financial security in retirement. By making a guaranteed income solution their default investment option, employers can help ensure their workforce is not just saving for retirement but prepared to enjoy it – for life.

Learn more about how LifePath Paycheck® works and the available resources here.

Not slowing down: 30 years of LifePath® target date funds

As the first target date fund, LifePath has seen investors through the past 30 years. We've evolved our TDF since to deliver better retirement outcomes.