BlackRock, Inc. (NYSE: BLK) today launched an innovative series of financial indexes that aim to fundamentally improve the way individuals and their advisors plan and save for retirement.
The BlackRock CoRI Retirement Index series (or the “CoRI Indexes”)
, backed by the firm’s world-class analytics, will enable an investor or advisor to calculate either of two critical figures: (1) how much estimated annual income an investor’s savings will provide throughout retirement, or conversely, (2) the level of savings an investor needs to generate a desired amount of annual income throughout retirement.
Because the CoRI Indexes are designed to reliably translate savings into estimated lifetime income, investors can also use a CoRI Index as a benchmark for monitoring retirement portfolio performance relative to an income goal, and/or in the course of designing and implementing a retirement income-focused investment plan.
“The CoRI Indexes will deliver truly groundbreaking support for investors grappling with today’s most critical financial planning question: ‘Do I have enough money to retire?’”, said Chip Castille, Managing Director and head of BlackRock’s US & Canada Defined Contribution Group. “By distilling investors’ retirement income need into a single number that can be accessed easily and checked regularly, the CoRI Indexes will offer an invaluable new starting point for retirement planning as well as support better informed discussions between investors and advisors on strategies for securing critical retirement income.”
Unlike traditional retirement planning “calculators” that rely on user assumptions and hypothetical inputs to generate a result, the CoRI Indexes are based on comprehensive, real-time market data and a broad-based portfolio of fixed income securities.
The CoRI Indexes are designed to assist investors age 55 and older in planning for retirement by tracking the estimated cost of $1 of future, annual inflation-adjusted lifetime income beginning at age 65, better equipping those investors to make necessary adjustments to their savings or investing strategy during the “pre-retirement” period when good planning and appropriate course-correction are vital.