BHF - BlackRock will add annuities to 401(k)s to enable lifetime stream of income
Asset manager BlackRock said it's making "significant progress" toward allowing access to guaranteed lifetime income for U.S. workers through its LifePath Paycheck solution, the company said in a release. The solution embeds annuity contracts issued by Equitable Holdings (NYSE:EQH) and Brighthouse Financial (NASDAQ:BHF) directly into a target date strategy. When participants reaches age 59.5, the solution offers them the option to purchase fixed individual retirement annuities from the insurers. "We're sitting between the end-individual and insurance companies, using our aggregation power to face off against the insurance company," BlackRock's Chief Client Officer Mark McCombe told The Wall Street Journal. Five large plan sponsors whose plans together represent $7.5B in target date investments elect to work with BlackRock (NYSE:BLK) to implement LifePath Paycheck as the default investment option in their employees' retirement plans, subject to plan-specific timing; plan adoptions are expected in 2022. The company also seeks to create mutual
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BlackRock will add annuities to 401(k)s to enable lifetime stream of income