BlackRock's LifePath Paycheck™ Closes 2024 with $16B in AUM
Retirement solution is now the fastest-growing lifetime income target-date strategy in the defined contribution market1
BlackRock's LifePath Paycheck™, a target-date solution which provides the option for guaranteed lifetime income, is the fastest growing lifetime income target-date strategy in the defined contribution market.1 LifePath Paycheck launched in April 2024, and six employer retirement plans – including those of Avangrid, Adventist HealthCare Retirement Plans, Tennessee Valley Retirement System (TVARS) and most recently, BlackRock - are currently invested, totaling $16B in assets under management.
The LifePath Paycheck solution provides plan participants with the option for a guaranteed stream of income for life, payable by insurers, and is now available as an investment selection for more than 200,000 eligible U.S. workers across the six plans. Fidelity Investments and Bank of America have enabled access to the solution on their recordkeeper platforms, and other recordkeepers, including Voya Financial, are also planning to support their clients' implementation of the LifePath Paycheck solution.
As more Americans live longer, nearly two-thirds (60%) of workers saving for retirement worry they'll outlive their retirement savings, according to BlackRock's annual Read on Retirement® survey – and 99% of those workers say having guaranteed retirement income would help. LifePath Paycheck provides plan participants with the option to access guaranteed income as early as age 59 ½ by purchasing annuity contracts issued by Equitable and Brighthouse Financial.
"As a pioneer in retirement innovation, BlackRock is creating new solutions for current and future generations of employees, many of whom are expected to live into the next century. LifePath Paycheck addresses the need for strategies that provide access to predictable, guaranteed income throughout retirement," said Mark McCombe, Vice Chairman, BlackRock.
BlackRock's survey found that nearly all (99%) of employers surveyed are interested in providing lifetime income strategies in their retirement plans. However, employers have been slow to implement solutions, facing barriers to adoption including complexity, cost, and ease of access for employees. BlackRock has sought to address these challenges by embedding the option for lifetime income in a target date solution, with no additional fees associated with the purchase of the annuity contracts.
"We want to take care of our team members at every stage of their career, including retirement. Implementing LifePath Paycheck helped us easily integrate retirement planning into our existing benefit offerings," said Rob Roy, Member of the Investment Committee for Adventist HealthCare Retirement Plans.
"The retirement savings and spending challenges of today's workers will be different from those of previous decades. Forward thinking employers know that retirement income is a game changer in the war for talent," said Rob Crothers, Head of U.S. Retirement, BlackRock. "We are proud to serve as a trusted partner to our clients in providing affordable, simple solutions that help their employees prepare for all stages of their financial life."
About BlackRock
BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to our asset management clients and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
Disclosures
Statement from Adventist HealthCare Retirement Plans is based on unique experience from current client and may not be representative of all client experiences. No cash or non-cash compensation was provided in exchange for this statement.
This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks.
©2025 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and LIFEPATH PAYCHECK are trademarks of BlackRock, Inc., or its affiliates. All other trademarks are those of their respective owners.
_____________________________
1 Sourced from publicly available data, media statements and announcements from providers of lifetime income investment solutions currently available in market through employer plan sponsor defined contribution plans.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250113416444/en/
Media Contacts
Thomasin Bentley
[email protected]
+1 (646) 231-1769
Andreia Cheong-A-Shack
[email protected]
+1 (646)-634-5568