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in him annual letter BlackRock CEO Larry Fink called on business investors, 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 devote a great deal of energy to 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 the letter he points out: March 2023 Report The Social Security Administration shows that by 2034, the system will no longer be able to pay people their full benefits.
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 Welfare Research Institute (EBRI), the median age of retirees is 62 and the average is 65, even though workers are more likely to say they will retire at age 70 or older.
Almost half of retirees who left their jobs earlier 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.
Headquartered in New York, BlackRock is the world’s largest asset manager, currently managing $10 trillion in assets. January. We have grown from a startup to an industry leader. less than 40 years And more than half of the assets the company manages are for retirement, according to Fink’s letter.