Each year, BlackRock, the world’s largest asset manager, sends a much-anticipated letter to leading CEOs. This year, chief executive Larry Fink’s focus was on why it is imperative for business to contribute to society. One of the first big issues he highlighted was retirement:
Americans Haven’t Saved Enough for Retirement. What Are We Going to Do About It?
How we got here — and one potential solution.
March 28, 2018
Summary.
The shift from defined benefit pension plans to employee-directed defined contribution 401(k)s has led us to an impending retirement crisis. Among Americans between 40 and 45 years of age, for example, the median retirement account balance is just $14,500 — less than 4% of what the median-income worker will require in savings to meet his retirement needs. What’s worse, Social Security currently provides a declining percentage of the required retirement income. So what’s the solution? One proposal is a Guaranteed Retirement Account that would travel with an employee from job to job.