Creating the new retirement

BlackRock |May 4, 2020
  • Within a generation, we went from a world where pensions and Social Security paid for retirement to a world where people depend on their own savings. At the same time, people are living longer. New generations are redefining work…career…and see wealth and well-being as deeply connected. And they face markets that are more challenging than ever before.

    That means we need to do more to make sure today’s plans work for participants and retirees. We need to help participants save more and help retirees turn their savings into a reliable source of income.

    At BlackRock, we find our purpose by bringing advanced investing insights to help people meet the challenges of the new retirement. Design smarter plans to help participants save more, identify potential new sources of alpha, and work to manage emerging risks that weren’t previously imaginable.

    We take our role as corporate citizens to heart by advocating for ways to make it easier for people to save for retirement. And find ways to help people beyond the reach of workplace plans build their savings. Most of all, we are relentlessly focused on creating sophisticated, yet simple solutions to the retirement income problem. Our curiosity into how participants work, earn, spend and behave keeps us focused on building the next generation of retirement solutions.

    As the world changes, so does retirement. Our purpose is to create a new retirement for everyone.

Forty years ago, the 401(k) entered the tax code. Yet instead of celebrating that milestone, many of us are asking questions. Is it doing enough? Can it navigate the growing uncertainty plans and participants face—driven by longer lives, more challenging markets and the retirement income challenge?

We believe in the power of asking questions—and finding answers through the competition of ideas—to build greater resilience in defined contribution plans. After all, that’s what has driven the evolution of the 401(k) over its first four decades.

Target date funds, default options, even employer contributions—no one imagined these or dozens of other now-common practices back in 1978. They are the product of the collective energy and insights of plan sponsors, consultants, providers and regulators over decades—addressing the needs of plan participants by brainstorming new ideas, testing concepts through trial and error, sharing results and imitating success.

We believe the answers will be found—in fact, are being found—where they have been right from the start: the competition of ideas in the retirement industry market place. Our purpose is to build resilience by working with our clients and industry partners to foster the next wave of ideas and best practices. That’s how we’ll help people navigate volatile markets, expand access to retirement plans and provide sustainable retirement income.