Get All Access for $5/mo

'Young People Have Lost Trust in Older Generations': BlackRock CEO Larry Fink Blames Boomers for the Retirement Crisis BlackRock, the world's largest asset manager, has $10 trillion in assets under management as of January, and more than half are for retirement.

By Sherin Shibu

Key Takeaways

  • In his annual letter to investors, BlackRock CEO Larry Fink focused on the retirement.
  • He wrote that boomers in positions of corporate or political leadership have an obligation to help fix the system.
  • Fink also suggested reconsidering the 65 as the retirement age.

In his annual letter to company investors, BlackRock CEO Larry Fink urged politicians and corporate leaders to come together to address the retirement crisis.

Fink, 71, highlighted the economic anxiousness of Millennials and Gen Z when it comes to retirement and stated that they are right to believe that his generation, the Baby Boomers, "have focused on their own financial well-being to the detriment of who comes next."

"As a society, we focus a tremendous amount of energy on helping people live longer lives," he wrote. "But not even a fraction of that effort is spent helping people afford those extra years."

Larry Fink, chairman and chief executive officer of BlackRock Inc. Photographer: Victor J. Blue/Bloomberg via Getty Images

In the letter, he points to a March 2023 report from the Social Security Administration that shows by 2034, the system will not be able to pay people full benefits.

Fink writes that the current message the workforce receives from the government and corporations is, "You're on your own."

"Before my generation fully disappears from positions of corporate and political leadership, we have an obligation to change that," Fink wrote.

Related: There's a Retirement Crisis on the Horizon — See How Your Savings Compare to the Rest of Your Generation's

The letter also suggests reevaluating the standard retirement age.

"No one should have to work longer than they want to," Fink wrote. "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."

Instead of moving back when people receive retirement benefits, Fink suggests having conversations about how to encourage people to work past 65 years old and how to treat that demographic differently, as people with a lot to offer instead of ready for retirement.

Related: This Retirement Trend Is Helping People Ease 'Financial Anxieties' and Avoid 'Loss of Purpose,' Workplace Expert Says

Recent data from the Employee Benefit Research Institute (EBRI) shows that the median age for retirees is 62 and the mean is 65 years of age, even though workers are more likely to say that they expect to retire at 70 or older.

Almost half of retirees who left the workforce earlier than they wanted to retire said they did so because of health problems, disabilities, or shifts at their company.

Only 35% of people who retired earlier than planned did so because they were financially ready for retirement.

Related: Can You Afford to Retire? Here's How Much Americans Spend Daily in Retirement

Fink also stated that BlackRock would announce partnerships and initiatives over the next few months to ask policymakers, investors, retirees, and other interested parties about how the average retirement age should change.

Other solutions Fink proposed were making investing automatic and helping retirees spend what they had saved more confidently.

NYC-headquartered BlackRock is the world's largest asset manager, with $10 trillion in assets under management as of January. It grew from startup to industry leader status in less than 40 years and, according to Fink's letter, more than half of the assets it manages are for retirement.

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Here's What the CPI Report Means for Your Wallet, According to JPMorgan and EY Experts

Most experts agree that there will be another rate cut next week.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.