BlackRock CEO Larry Fink has a stark warning for Americans: they have not saved nearly enough to retire comfortably. The billionaire chief executive of the world's largest asset management firm, which oversees $15 trillion in assets under management, laid out his concerns in his 2025 annual shareholder letter.

BlackRock surveyed 1,000 registered voters on how much money they would need to retire comfortably. The average response came in at roughly $2.1 million. "That's a lot. More than I was expecting," Fink wrote. "Almost no one is close," he added, noting that 62% of respondents had less than $150,000 saved for retirement — approximately 7% of the amount they believe they need.

Fink, 73, has long sounded the alarm on America's retirement crisis. Among his central arguments is that the current system is under strain as life expectancy continues to rise and the costs of senior care escalate. "When you're retired, you're basically living on a fixed income," Rita Choula, senior director of caregiving at the AARP Public Policy Institute, previously told Fortune. "If you have not factored in an additional $7,000, $8,000, $9,000 a year for your fixed income, that can have a big impact."

At the same time, millions of baby boomers are reaching retirement age without adequate savings or a clear plan to close the gap. "The problem will only get harder and nastier as the oldest Gen-Xers start to retire," Fink argued. "They're the first generation primarily dependent on 401(k)s. And the 401(k) trend is growing with millennials and Gen Z."

This generational shift reflects a decades-long transition away from traditional employer-sponsored pensions — known as defined-benefit plans, which guaranteed workers a set income in retirement — toward 401(k)-style defined-contribution plans, where the employee bears the investment risk. The 401(k), created through a provision in the Revenue Act of 1978, was originally designed as a supplemental savings vehicle, not a primary retirement pillar, yet it has become the backbone of American retirement planning.

Even those who have accumulated savings in a 401(k) face a separate challenge, Fink contends. Because 401(k) plans don't "come with instructions," retirees struggle to determine how to balance spending against preserving a lump sum over the remainder of their lives. Fink is not opposed to 401(k)s in principle, but he argues they have fallen short as a mass retirement solution because they shift the burden of financial planning onto individuals rather than employers or institutions. He has historically advocated for greater mandatory savings requirements and a larger role for employers.

Congress has taken some steps to address these gaps. The SECURE Act 2.0, signed into law in December 2022, includes provisions requiring automatic enrollment in new 401(k) plans beginning in 2025 and raising catch-up contribution limits for older workers, though its impact on overall savings adequacy remains to be seen.

"The result? Even retirees who've saved well often spend too little, gripped by fear that they'll run out. They downsize dreams and delay joy," Fink wrote. "The economist Bill Sharpe called this problem the 'nastiest, hardest problem in finance.' Hard, but solvable."

A Growing Danger

Federal Reserve data supports Fink's assessment: roughly half of U.S. households approaching retirement age — those in their 50s and 60s — have no money saved in a 401(k) or IRA. These households are forced to rely on programs such as Social Security, yet many worry they will not receive the benefits they have been promised, according to Bankrate.

Social Security pays approximately $2,000 per month on average and is nearing insolvency. "Americans are right to be worried," Bankrate stated, citing recent federal reports showing that the Social Security and Medicare trust funds are approaching depletion.

While Fink's survey data indicates Americans have roughly $150,000 saved for retirement on average, the figure varies significantly by source and age cohort. According to Vanguard's "How America Saves" 2025 report, average and median 401(k) balances differ across demographics.

The Social Security trust fund is projected to be depleted by the mid-2030s, which could trigger an approximately 20%–25% reduction in benefits unless Congress intervenes. "The country will have to make important decisions about the future of Social Security: how it is funded, how generous it will be, and when it can be accessed," the Roosevelt Institute observed.

Searching for Solutions

Under Fink's leadership, BlackRock has been aggressively expanding its retirement product lineup, ranging from target-date funds to annuity solutions designed for defined-contribution plans. The firm's LifePath Paycheck product gives customers access to guaranteed income through a target-date fund — an investment strategy that automatically adjusts its allocation toward a specified retirement year. Plan participants can begin accessing guaranteed income as early as age 59.5 by purchasing annuity contracts.

Fink has expressed confidence that such plans will grow in adoption. "We believe LifePath Paycheck will one day be the default retirement investment strategy, providing access to a predictable, paycheck-like income stream that can help improve the quality of life for millions of Americans in retirement," he wrote in a 2024 statement.

Meanwhile, many Americans have been forced to "unretire" after realizing they lack the resources to sustain themselves. Despite Fink's warnings, a significant portion of the population has not adequately prepared for the retirement they may have envisioned decades earlier.

A version of this story was originally published on Fortune.com on February 17, 2026.