In a letter to BlackRock shareholders, Chairman Larry Fink discussed the difficulty of retiring and called it one of the biggest economic challenges of the 21st century. The idea for retiring at age 65, he wrote, originated from the Ottoman Empire, a fact that he called “a bit crazy.”
Fink referred to data from the U.S. Census Bureau showing that nearly half of Americans between the ages of 55 and 65 have no personal retirement savings, and noted that tens of millions of people work in part-time or gig roles that don’t offer contribution plans. The country’s retirement system, he said, is entering a massive crisis and both government and business leaders much address it immediately.
“Today in America, the retirement message that the government and companies tell their workers is effectively: ‘You’re on your own,’” Fink wrote. “And before my generation fully disappears from positions of corporate and political leadership, we have an obligation to change that.”
A few measures have been taken, such as a federal law that requires employers with 401(k) plans to automatically enroll new employees. Additionally, around 20 states have established retirement systems that include part-time and gig workers. However, corporations have a responsibility to provide fund matching or financial education to their employees, and even more states should investigate creating specific retirement programs.
