Retirement Planning News: BlackRock Is Adding Annuities to 401(k)s
BlackRock, the world’s biggest asset manager with more than $9 trillion in assets, is moving into annuities.
The firm has a new target date retirement product for 401(k) plans that will provide workers a stream of payments through their lives. Called the LifePath Paycheck solution, it embeds annuity contracts issued by Equitable and Brighthouse Financial, according to BlackRock.
Once participants reach age 59-½, they will have the option to purchase a fixed individual retirement annuity to provide a guaranteed stream of income for life. Participants will be able to use 30% of their 401(k) balance for in the product, according a report in The Wall Street Journal.
Five employers have already signed up for the new product, including the Tennessee Valley Authority, which has about $7.5 billion in target date investments in its retirement plans.
BlackRock expects that over 120,000 U.S.-based 401(k) plan participants will be able to access the annuity option starting in 2022, when initial plan adoptions are anticipated.
To learn more and to get your free annuity quote, log onto: https://www.annuityquoteadvisor.com/