The Blubber

In his recent annual investor letter, BlackRock CEO Larry Fink cautioned that without a concerted, high-level effort by corporate leaders and politicians to reimagine retirement in the US, there's a risk of alienating younger generations from both capitalism and politics.

"It's no wonder younger generations, Millennials and Gen Z, are so economically anxious," Fink wrote. "They believe my generation - the baby boomers - have focused on their own financial well-being to the detriment of who comes next. And in the case of retirement, they're right."

Fink proposed extending the expected retirement age beyond 65 and suggested that greater access to investing and 401(k) plans could help address the issue.

This approach would also benefit Fink personally, as more than half of the $10 trillion in assets managed by BlackRock are earmarked for retirement.

However, for many Americans, saving for retirement is a distant concern. According to Bankrate data, only 44% of US adults could cover an emergency expense of $1,000 or more from their savings.

In December 2022, the Biden administration enacted SECURE 2.0, which encourages employers to offer retirement plan benefits to their employees and removes some barriers to saving. The administration also proposed a rule late last year to limit excessive fees in retirement investments.

Independent Vermont Senator Bernie Sanders recently raised concerns about retirement security when he chaired a hearing on the topic. Sanders noted that about a quarter of seniors are living on less than $15,000 a year.