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.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Business News

Homeowners in These 10 States Pay the Most in 'Hidden' Upkeep Costs

Hidden home costs pile on top of mortgage payments.

Data & Recovery

Get $60 off This Portable VPN Travel Router

Why keep paying for a VPN service when you can have a tiny, lightweight piece of hardware that can provide you with a lifetime of maximum VPN protection?

Money & Finance

Avoid These 10 Mistakes Entrepreneurs Make with Money

Despite the challenging statistic that only 5% of startups survive beyond five years, common financial pitfalls often contribute to their failure. Through personal observation, I've identified the prevalent financial mistakes made by entrepreneurs.

Growing a Business

5 Books to Help You Motivate, Unify and Build Perspective

In a post-Covid world, check out these must-read books to help build a more resilient organization, create a modern work culture and maintain a powerful growth mindset.