BlackRock CEO Larry Fink has an important message for the next wave of US retirees — here's how he wants to solve the country's retirement crisis

In his 2024 annual letter to shareholders, Fink recalled going through his parents' finances after his mother passed away and his father started to decline.

He surmised that they never made more than a combined $150,000 a year in today's dollars. Yet was shocked that their retirement savings "was an order of magnitude bigger” than someone would expect for a couple with their income.

“And when we finished going over their estate, we learned why: My parents' investments,” he wrote. The experience reminded him that BlackRock was started "because we believed participating in those markets was going to be crucial for people who wanted to retire comfortably and financially secure."

In a March interview with Bloomberg, Fink addressed the financial challenges that keep Americans from retiring with dignity, which revolve around the overreliance on Social Security and the failure to save.

Building on the ‘fantastic foundation’ of Social Security

"Social Security is a fantastic foundation for retirement," Fink said. "But if that's all you have when you retire, you're going to be living below the poverty line. It's supplemental but it's not meant to be the totality of what you have in retirement."

While there’s no consensus on how much money you need to retire (and everyone’s situation is different), one yardstick is the 80% rule, where you plan to spend 80% of your pre-retirement income per year. Assuming you retire from a job with a $100,000 annual salary, Social Security won’t come close to cutting it.

The current average monthly benefit for retirees is $1,907, or just under $23,000 a year, according to the Social Security Administration. The shortfall? More than $57,000. The maximum benefit for an individual retiring at age 70 in 2024 is $4,873 per month or $58,476 a year.

In order to live the retirement you want, you’ll need to save up a separate nest egg to supplement your Social Security benefits.

By opening a gold IRA you can enjoy the tax advantages of an IRA and the inflation-hedging properties of gold as you grow your nest egg.

With the help of American Hartford Gold — an industry leader in precious metals, offering physical delivery of gold, silver and platinum — you can open a gold IRA and preserve your retirement dreams with an inflation-resistant asset that will bulk up your savings regardless of the economic circumstances.

You can also try out high-yield savings account options to up your retirement savings and supplement your social security benefits.

We’ve compiled a list of the Best High-Yield Savings Accounts of 2024 so you can have a streamlined look at what high-yield savings account is best for your savings to grow over time.

Cut expenses now to invest for your future

"We need to really educate our citizens about the need for savings," said Fink — though not via vanilla bank accounts. Investing, he stressed, allows people to take advantage of capital markets and compounding.

In the end, how much you get to live on in your retirement determines how you get to live. “My parents lived their final years with dignity and financial freedom,” Fink wrote. “Most people don’t have that chance. But they can.”

By cutting down on essential expenses like home and auto insurance, you can make more room in your monthly budget to contribute to your retirement fund.

With the online platform OfficialHomeInsurance you’ll have access to an array of affordable home insurance options near you.

Similarly, with Bestmoney.com you can browse the best car insurance rates in your area so you know you’re getting the best deal possible. When you fill in some information about yourself, both Official Home Insurance and BestMoney will provide you with a list of available — and affordable — rates so you can trim your spending.