The Blubber

BlackRock Inc. CEO Larry Fink sounded the alarm on an impending “retirement crisis” and urged baby boomers to help younger generations secure their financial futures.

Doing so, he argued, could prevent younger Americans from growing disillusioned with capitalism and politics in the years ahead.

With people living longer yet struggling to afford retirement and plan adequately, Fink used his annual letter as chairman of the world’s largest asset manager to call for “an organized, high-level effort” to overhaul the retirement system. More than half of BlackRock’s $10 trillion in client assets are managed for retirement.

“It’s no wonder younger generations—millennials and Gen Z—are so economically anxious,” Fink wrote in his letter to BlackRock investors on Tuesday. “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.”

Young people “have lost trust in older generations,” he continued. “The burden is on us to get it back. And maybe investing for their long-term goals, including retirement, isn’t such a bad place to begin.”

Fink stressed that baby boomers in leadership positions—both in business and government—have an obligation to help fix the system. He also questioned whether 65 should still be considered the standard retirement age. Currently, individuals can claim Social Security benefits as early as 62, while those born after 1960 reach full retirement age at 67. Medicare coverage begins at 65.

“No one should have to work longer than they want to,” Fink said. “But I do think it’s a bit crazy that our anchor idea for the right retirement age—65 years old—originates from the time of the Ottoman Empire.”

By mid-century, one in six people worldwide will be over 65, up from one in 11 in 2019, Fink noted, citing United Nations data. In the U.S., nearly half of Americans aged 55 to 65 lacked personal retirement savings, according to 2022 census data.

“The federal government has prioritized maintaining entitlement benefits for people my age (I’m 71), even though it might mean that Social Security will struggle to meet its full obligations when younger workers retire,” Fink said.

BlackRock, he added, will soon announce a series of partnerships and initiatives aimed at tackling key questions—such as whether the average retirement age should be adjusted and how to better support older Americans who wish to keep working.