BlackRock announced that its retirement income solution, LifePath Paycheck™, is now available in defined contribution plans.
The LifePath Paycheck solution takes a new approach to retirement income by providing access to guaranteed income through a target date fund, an investment strategy that automatically adjusts to a targeted retirement year. Plan participants will have the option to access the guaranteed income as early as age 59 ½ by purchasing annuity contracts issued by Equitable and Brighthouse Financial.
To help educate plan participants, BlackRock developed MyLifePath™, a digital experience that shows how today’s 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 coming months. To date, 14 plan sponsors, with plans totaling $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.