US-based investment management company BlackRock has announced that it is working with tech giant Microsoft to develop a digitized retirement-planning platform.
According to BlackRock, while technology advancements have made a profound impact across various industries, "retirement solutions have been slow to keep pace". The age-old pension system has left people struggling to plan in order to ensure a financial security net, BlackRock noted.
"The traditional pension system that generations of workers depended on for lifetime income has been upended," Blackrock said. "This shift in responsibility, from corporations to individuals, combined with ever increasing life-spans, has created a need to reimagine a new approach to securing a sound financial future in retirement – one that is powered by innovative investment solutions and the most advanced, trusted and cutting-edge technologies."
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The new platform will integrate Microsoft's AI and cloud capabilities to develop the new platform and BlackRock's next-generation investment products.
Laurence D. Fink, CEO and chairperson of BlackRock, said: "Retirement systems worldwide are under stress and providing financial security to retirees has become one of the most defining societal challenges of our time."
A company statement released on Thursday did not outline what the platform would offer, but according to the Wall Street Journal, one of the offerings said to be developed could offer users a reward system based on "thrifty" behavior.
However, according to BlackRock, the new platform, once developed, will only be made available to US employees through their employers' workplace savings plan.