Avangrid Implements BlackRock's LifePath Paycheck to Enhance Retirement Benefits

Avangrid, a Connecticut-based energy company, has implemented BlackRock's LifePath Paycheck retirement income product to attract and retain employees across various compensation levels. The LifePath Paycheck solution, designed to help American workers address the challenge of retirement security, provides access to guaranteed income through a target date fund.

Avangrid, along with Adventist HealthCare Retirement Plans and Tennessee Valley Authority Retirement System, will be among the first to implement LifePath Paycheck as the default investment option for their employees' defined contribution plans. To date, 14 plan sponsors with $27 billion in target date assets are planning to make LifePath Paycheck available to 500,000 employees, with several other large plan sponsors expressing interest.

BlackRock has worked closely with recordkeepers, such as Fidelity Investments and Bank of America, to facilitate the implementation of LifePath Paycheck. Additionally, BlackRock has collaborated with insurers Equitable and Brighthouse Financial to provide the income stream option for the LifePath Paycheck solution.

Why this matters: The implementation of LifePath Paycheck by Avangrid and other plan sponsors highlights the growing importance of providing guaranteed retirement income options to employees. This trend reflects the increasing concern among American workers about outliving their retirement savings and the need for innovative solutions to address this challenge.

According to BlackRock's survey, nearly two-thirds of American workers fear outliving their retirement savings, and 99% say having guaranteed retirement income would help ease that concern. Paul Visconti, Avangrid's Senior Director of Total Health and Retirement Programs, stated that LifePath Paycheck is a "transformative development" in their effort to attract, retain, and empower talent, as it takes the guesswork out of financial planning.

Avangrid has seen strong engagement with the new retirement income product, with 2,700 out of 8,000 active participants attending informational meetings and webinars about LifePath Paycheck. The company implemented the solution to appeal to diverse worker cohorts and provide a more equitable retirement benefit, regardless of compensation status.

BlackRock CEO Larry Fink has emphasized the need for a "financial equivalent of a moonshot" to address the <a href="https://www.investmentnews.com/life-insurance-and-annuities/news/blackrock-unveils-its-answer-to-the-looming

Key Takeaways

• Avangrid implements BlackRock's LifePath Paycheck retirement income product.
• LifePath Paycheck aims to provide guaranteed retirement income to workers.
• 14 plan sponsors with $27B in assets plan to offer LifePath Paycheck.
• Avangrid sees strong engagement, with 2,700 of 8,000 participants attending info sessions.
• LifePath Paycheck aims to provide a more equitable retirement benefit.