1:16 PM, Dec 13, 2018 — Microsoft (MSFT) and asset manager BlackRock (BLK) said they will develop a platform to improve retirement savings and investment habits as US workers live longer and responsibilities for pensions shift from companies to individuals.
In a statement Thursday, the companies said they will bring together New York-based BlackRock’s investment products and Redmond, Washington-based Microsoft technologies. The platform will let people engage more regularly with their assets to get an idea of how their contributions will turn into long-term retirement income.
“Retirement systems worldwide are under stress and providing financial security to retirees has become one of the most defining societal challenges of our time,” Laurence Fink, chief executive of BlackRock, said in the statement. “BlackRock has a tremendous responsibility to help solve this challenge, and we recognize the need to act now.”
BlackRock, which reported an 8% growth in third quarter assets under management to $6.4 trillion, said it will offer the new platform alongside “next generation investment products that it will design and manage.” The new products will be made available to US workers through their employers’ workplace savings plan, BlackRock said.
In a survey conducted between July and August of almost 5,000 adults ranging from ages 18 to 74, 47% said they haven’t put away any money for retirement, the Association of Young Americans and aging advocacy group AARP. That includes 44% of Baby Boomers, the generation of people born between 1946 and 1964.
“Millions of Americans are struggling to achieve their financial goals for retirement,” Satya Nadella, Microsoft’s CEO, said in the statement that didn’t give details about when the platform would become available. “Together with BlackRock we will apply the power of the cloud and AI to introduce new solutions that address this important challenge and reimagine retirement planning.”
Companies: Microsoft Corporation
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