Voya Financial today announced an expansion to its suite of retirement income options focused on accessibility.
The firm will be adding the BlackRock LifePath Paycheck solution to its recordkeeping platform, to allow eligible participants to convert a share of their retirement savings into a guaranteed lifetime income stream. Insurers are chosen by BlackRock.
“One of the top concerns we hear from clients is the fear that participants will outlive their retirement savings,” said Amy Vaillancourt, president of Retirement at Voya Financial. “Our research has found 75% of working Americans strongly agree or agree that they worry about outliving their savings. We’re helping address this concern and advance our strategy to provide access to innovative solutions that support successful retirements.”
Employers who offer the product will also have access to BlackRock’s MyLifePath digital experience for participants on the Voya platform, according to the announcement. MyLifePath works in tandem with LifePath Paycheck and is designed to educate participants by helping them estimate the retirement income they’ll see from the guaranteed lifetime income product.
“Helping people achieve better retirement outcomes is BlackRock’s core business,” said Rob Crothers, head of Defined Contribution Product and Platform at BlackRock. “Since pioneering the first target date fund over thirty years ago, we continue to develop innovative solutions that seek to enhance retirement security for American workers. LifePath Paycheck provides the choice to receive a predictable, guaranteed income stream throughout retirement and we’re excited to be working alongside Voya to deliver client-focused solutions.”
The product comes amid renewed interest for guaranteed lifetime income products. May research by Nuveen and the TIAA Institute found that 93% of workers surveyed, who also save in 401(k) plans, believe it’s important for their employer to provide options that transfer savings into guaranteed income.
LifePath Paycheck, launched in April 2024, is available through employer-sponsored workplace plans reaching 350,000 U.S. workers and representing over $22 billion in assets under management (AUM).
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