BlackRock Announces New Retirement Plan, Could Benefit Florida's Large Retirement Population

BlackRock – one of the newest and biggest investment firms on the block, has introduced its new LifePath Paycheck program. The company has dubbed the program the “new retirement” option which grants participants “lifetime income” that increases over time.

In a press release regarding the introduction of the program, BlackRock states, “LifePath Paycheck is the next generation of target date solutions that combines the simplicity of a target date strategy with the increased certainty of an annuity from insurers selected by BlackRock to offer participants a paycheck for life.”

The program has three stages:

1) Early career. The program “focuses on growth when participants are young and is primarily invested in equity and equity-like assets.”

2) Later career. Beginning at age 55, the program starts to allocate toward the lifetime income asset.

3) Retirement. When participants opt into purchasing the lifetime income stream, they will begin to receive a paycheck for life at the age of 59 and a half.

Any funds saved from the plan can be “invested in a retirement fund designed to complement the lifetime income stream, in another retirement plan investment option or redeemed for cash.”

Portfolios are made up of four categories: equity, inflation, fixed income, and lifetime income.

Moreover, BlackRock boasts that the program’s “MyLifePath” revolves around a “digital experience.”

“The MyLifePath platform is a digital experience that is accessible through an eligible retirement plan’s recordkeeper. MyLifePath provides information about LifePath Paycheck and provides a means of facilitating an eligible participant’s annuity purchase option with the selected insurers. It delivers a clear picture of how today’s contributions can translate to income in retirement,” the company states.

The state of Florida hosts 8.6 million adults over the age of 50. In 2021, those entering post-work life chose the Sunshine State three times more than any other state.

After a study from WalletHub in January of 2024 declared Florida the number one state to retire, Governor Ron DeSantis (R-FL) said he was “proud” of that ranking.

“Florida’s strong economy and low taxes create opportunities for families which is why Florida continues to lead the nation in net in-migration,” said Governor Ron DeSantis. “We are proud to be the top destination for retirement.”