Brighthouse Financial, Inc. announced that BlackRock, Inc. has enlisted the company as one of two insurers to help deliver LifePath Paycheck™, a next-generation investment solution being developed by BlackRock that is designed to provide millions of American workers with simplified access to lifetime income throughout their retirement.
LifePath Paycheck™ seeks to offer the simplicity and lifetime income stream of a defined benefit plan, combined with the flexibility and dynamism of a defined contribution plan.
“Brighthouse Financial is thrilled to work with BlackRock to deliver LifePath Paycheck,” said Eric Steigerwalt, president and CEO, Brighthouse Financial. “The purpose of LifePath Paycheck aligns with our mission at Brighthouse Financial to help people achieve financial security, and we look forward to expanding our relationship with BlackRock through this significant innovation in retirement investing.”
LifePath Paycheck™ is a target date strategy that will include an allocation to innovative annuity contracts, over time.
In a significant breakthrough for the industry, these annuity contracts, to be issued by certain Brighthouse Financial insurance subsidiaries and another selected insurer, will not limit the daily liquidity of the target date strategy and will provide plan participants with the option to use a portion of their plan account balance at retirement to purchase fixed individual retirement annuities from the insurers that will provide guaranteed lifetime income.
The solution will be available for U.S. employers to provide to their employees through their defined contribution retirement plans.
“We are very excited Brighthouse Financial is joining us in this effort to provide American workers with simplified access to lifetime income. The recent market volatility has been difficult for employees saving for retirement. Retirees need the tools to find financial security, without fear of running out of money or of market losses significantly eroding their retirement savings. For companies, helping workers save and invest for the long term is not just the right thing to do, it is critical for deepening the connection between them and their employees,” said Mark McCombe, BlackRock’s chief client officer.
Brighthouse Financial’s issuance of annuity products for the LifePath Paycheck™ solution is subject to certain approvals, including regulatory approval of the annuity products.
About Brighthouse Financial, Inc.
Brighthouse Financial, Inc. (Brighthouse Financial) (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of the largest providers of annuities and life insurance in the U.S.,1 we specialize in products designed to help people protect what they’ve earned and ensure it lasts. Learn more at brighthousefinancial.com.
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, clients turn to the firm for the solutions they need when planning for their most important goals. As of March 31, 2020, the firm managed approximately $6.47 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com/corporate.