BlackRock has launched its retirement income solution, LifePath Paycheck, in defined contribution plans. LifePath Paycheck offers a new method for retirement income, granting assured funds via target date funds, an investment strategy that automatically adjusts to a targeted retirement year.

Participants can access this income from age 59 through annuity contracts from Equitable and Brighthouse Financial. To help educate plan participants, BlackRock developed MyLifePath, a digital experience that shows how contributions can translate into income in retirement. Avangrid, Adventist HealthCare Retirement Plans, and Tennessee Valley Authority Retirement System will be among the first to implement the strategy as the default investment option for their employees’ defined contribution plan, with additional plan sponsors to follow in the near future.

To date, 14 plan sponsors, with plans totalling USD 27 billion in target date assets, are planning to make LifePath Paycheck available to 500,000 employees, with several other large plan sponsors expressing interest. Officials from BlackRock said they believe LifePath Paycheck will one day be the default retirement investment strategy, providing access to a predictable, paycheck-like income stream that can help improve the quality of life for Americans in retirement. A strong demand for guaranteed retirement income solutions Access to an option for guaranteed income could help alleviate the stress many Americans currently face about the uncertainty of outliving their savings.

According to early findings from BlackRock’s ninth annual Read on Retirement survey, nearly two-thirds (60%) of those surveyed worry they’ll outlive their retirement savings and 99% say having guaranteed retirement income would help ease that concern. Beyond financial benefits, 93% say having more certainty around retirement income would help their mental health today. Retirees agree – 94% surveyed also believe employers should provide their employees with a retirement income solution through their workplace plan.

Additionally, the survey found that 99% of plan sponsors feel responsible for helping plan participants generate and/or manage their income in retirement. Bringing the industry together BlackRock has worked closely with recordkeepers to facilitate the implementation of LifePath Paycheck for their clients. Fidelity Investments and Bank of America are among the first to enable access to the solution on their record keeping platforms.

Other recordkeepers, including Voya Financial, are also planning to make it available. In addition, BlackRock worked closely with insurers Equitable and Brighthouse Financial on providing the LifePath Paycheck solution’s income stream option. .