Equitable, a leading financial services company and subsidiary of Equitable Holdings, today announced it is working with BlackRock to provide simplified access to lifetime income through an annuity within a new target date investment solution for BlackRock’s U.S. defined contribution plan clients.
The investment solution is a target date strategy that will include an allocation to innovative annuity contracts, over time. The annuity contracts, to be issued by Equitable and another selected insurer, will not limit the daily liquidity of the target date strategy.
Plan participants will have the option to use a portion of their plan account balance at retirement to purchase a fixed individual retirement annuity from Equitable that will provide guaranteed lifetime income. The solution will be available to U.S. employers to provide to their employees through their defined contribution retirement plans.
“This economic environment has underscored the growing need for financial security in retirement,” said Nick Lane, President of Equitable. “By providing access to lifetime income options within workplace retirement plans, Equitable brings increased choice and flexibility to help more Americans secure their financial well-being.”
The movement toward defined contribution plans and away from defined benefit plans has resulted in the need for individuals to determine, often on their own, how to convert their savings into a dependable income stream – a problem made even more difficult during times of market volatility. BlackRock’s LifePath Paycheck™ seeks to offer the simplicity and lifetime income stream of a defined benefit plan, combined with the flexibility and choice of a defined contribution plan.
“We are thrilled Equitable 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.
Equitable has an established track record of innovation and experience in the retirement plan market, including 401(k) plans. The company has provided guaranteed income options in 401(k) plans as a recordkeeper and an investment manager since 2007.
“As the leading retirement plan provider for educators, we welcome the opportunity to provide lifetime income options for a broader group of retirement savers,” said Stephen Scanlon, Head of Group Retirement, Equitable. “The opportunity to secure lifetime income will help ensure future retirees can meet their essential needs in retirement.”
Equitable is the leading 403(b) retirement plan provider in the K-12 market by contributions and assets under management.i The company also provides 457 plans for local governments and municipalities.
Equitable, a subsidiary of Equitable Holdings (NYSE: EQH), has been one of America’s leading financial services providers since 1859. With the mission to help clients secure their financial well-being, the company provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and financial professionals and serves 2.8 million clients across the country. Please visit equitable.com for more information.
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.
Equitable is a brand reference to AXA Equitable Life Insurance Company (NY, NY) to which the reference to an 1859 founding exclusively applies, and is, overall, the brand name of Equitable Holdings, Inc. All guarantees provided within the fixed annuity discussed will be backed solely by the claims-paying ability of the issuing life insurance company. The reference to 8,000 employees and financial professionals includes approximately 4,700 financial professionals of AXA Advisors, LLC (member FINRA, SIPC). GE-3099685(05/20)(exp.06/20)
i See LIMRA’s “Not-for-Profit Retirement Market Report, Q4 2019.” Equitable Life was ranked as the largest provider in a survey of 15 companies based on K-12 403(b) contributions and assets under management.