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BlackRock CEO suggests Americans work longer to address retirement challenges

A Solution to the Retirement Crisis? Americans Should Work for More Years, BlackRock CEO Says

Committee proposes raising Social Security retirement age

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With Americans living longer and spending more years in retirement, the nation’s changing demographics are “putting the U.S. retirement system under immense strain,” according to BlackRock CEO Larry Fink in his annual shareholder letter.

One way to fix it, he suggests, is for Americans to work longer before they head into retirement.

“No one should have to work longer than they want to. But I do think it’s a bit crazy that our anchor idea for the right retirement age — 65 years old — originates from the time of the Ottoman Empire,” Fink wrote in his 2024 letter, which largely focuses on the retirement crisis facing the U.S. and other nations as their populations age.

Fink’s suggestions about addressing the nation’s retirement crisis come amid a debate about the future of Social Security, which will face a funding shortfall in less than a decade. Some Republican lawmakers have proposed raising the retirement age for claiming Social Security benefits, arguing, like Fink, that because Americans are living longer, they should work longer, too.

How to maximize retirement savings by minimizing taxes

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But that ignores the reality of aging in the workplace, with the AARP finding in a 2022 survey that the majority of workers over 50 say they face ageism at work. And because of ill health or an unexpected job loss, many older Americans stop working before they planned to. In fact, the median age of retirement in the U.S. is 62 — even lower than the “traditional” retirement age of 65.

Fink is right in saying that the retirement system isn’t working for most households, noted retirement expert and New School of Research professor Teresa Ghilarducci told CBS MoneyWatch. But his assessment that people should work longer misses the mark, she added.

“After a 40-year-old experiment of a voluntary, do-it-yourself-based pension system, half of workers have no easy way to save for retirement,” she said. “And in rich nations, why isn’t age 65 a good target for most workers to stop working for someone else?”

She added, “Working longer won’t get us out of this. Most people don’t retire when they want to, anyway.”

Vested interest?

To be sure, America’s retirement gap, or the gulf between what people need to fund their golden years versus what they’ve actually saved, isn’t new, nor is Social Security’s looming funding emergency. Yet Fink’s comments are noteworthy because of his status as the head of the

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Kevin McCarthy, former House Speaker, seeks revenge

Ousted House Speaker Kevin McCarthy is out for vengeance. After being voted out as House speaker, McCarthy left office at the end of 2023. Now, he is traveling the country giving speeches, appearing on TV, and plotting revenge against those who orchestrated his downfall.

Eight Republican lawmakers joined with Democrats in toppling McCarthy, marking the first time a House leader has been voted out. Two of the Republicans who voted against him are retiring, while three others are facing strong primary challenges. McCarthy is working behind the scenes to ensure their defeat, using his political connections and resources to support their opponents.

McCarthy’s main nemesis in this battle for vengeance is Rep. Matt Gaetz, who was instrumental in McCarthy’s ouster. During a recent appearance at Georgetown University, McCarthy accused Gaetz of pushing him out of the speakership due to an ethics complaint involving a 17-year-old girl. Gaetz denied the allegations and called McCarthy a liar.

Despite the turmoil of his speakership lasting less than nine months, McCarthy feels liberated and focused on campaigns and elections, which have always been his forte. He remains close to lawmakers he recruited and maintains a vast donor network built over years as a top GOP strategist.

McCarthy’s top priority is to secure Republican control of the House in the upcoming elections. He is also focused on reelecting key members, such as Young Kim, Michelle Steel, and Lori Chavez-DeRemer, who have diversified the House GOP.

At a recent seminar on American democracy, McCarthy displayed both charm and self-deprecation. He broke with former President Trump by supporting aid for Ukraine and acknowledging Joe Biden’s victory in the 2020 election. However, McCarthy also dodged questions and made false equivalences, drawing criticism from his detractors.

Despite speculation about a second Trump administration, McCarthy has not shown interest in becoming an influence peddler. Instead, he prefers working in the campaign realm, where his skills and talents are best utilized. McCarthy’s focus is on electing viable Republican candidates and achieving payback against those who pushed him out of power.

In conclusion, Kevin McCarthy is on a mission for vengeance, using his political savvy and resources to take down his opponents and secure Republican victories. His determination and focus on campaigns and elections show that McCarthy is not one to back down easily, making him a force to be reckoned with in the world of politics.