As life expectancy increases it’s only going to become more difficult for Americans to pay for their retirement. When 401(k) plans emerged 40 years ago, not much thought was given to how workers would use the money they accumulated. It has only been fairly recently that the concept of “retirement income” has taken shape, mostly in response to workers expressing deep concerns about what their futures might look like. This report looks at new ways to address retirement income and decumulation to help retirees live life more fully through more efficient use of their assets.

New Approach to Decumulation and Retirement Stability

BlackRock believes successful solutions will extend beyond investment products to re-orient participants around “income as an outcome.” This includes helping to clearly explain how today’s contributions can translate to potential retirement income, and to help simplify and streamline the complexity of guaranteed income through annuities.

“All hands on deck” moment

The U.S. is facing a retirement crisis. Forty percent of households approaching retirement age have zero savings, and a quarter of American seniors could not fund two years of paid home care even if they liquidated all of their assets.1 The COVID-19 crisis has magnified these troubling trends, underscoring the work that must be done to provide workers and retirees long-term stability and security.

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