BlackRock has expanded its proprietary CoRI retirement suite, enhancing the CoRI online tool with a new feature that helps pre-retirees identify savings and investment strategies that can help plan for income goals in retirement.
The tool enhancement further advances the usefulness of the CoRI suite, a groundbreaking approach to retirement saving designed to help investors understand and take action to address the critical relationship between accumulated savings and lifetime income in retirement.
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The CoRI suite includes the BlackRock CoRI Retirement Indexes (the "CoRI Indexes"), which track the expected median cost of lifetime income for individuals turning 65 in the year referenced in the respective index names; the BlackRock CoRI Funds, which are mutual funds that use the CoRI Indexes as their investment "benchmark"; and the CoRI tool, which delivers in seconds a clear and intuitive "translation" between retirement savings and estimated annual retirement income, and with the new enhancements, illustrates how sample investment portfolios with varying allocations can help an investor plan for their retirement income goal. The full suite allows for personalized and dynamic retirement planning.
Insight Plus Tools to Translate Savings into Income
Chip Castille, head of BlackRock’s US Retirement Group, said: "The CoRI approach addresses the crucial issue at the heart of the retirement challenge: saving enough in your working years to get the income you want in retirement. CoRI gives pre-retirees unique insight into the savings-to-income translation – plus the tools to put that insight to work."
A saver can use the appropriate CoRI Index to estimate how much his or her current savings may generate in annual lifetime income when he or she turns 65 or, conversely, how much he or she would need to have currently saved to reach a certain level of annual retirement income upon turning 65. The CoRI Funds are mutual funds that seek to provide long-term investment results that correspond to the total return of the applicable CoRI Index.
With the enhanced online CoRI tool – after obtaining an estimate of how much their current savings may generate or how much they would need to save – investors can examine a range of sample portfolios based on publicly-available indexes as proxies for asset classes, conservative (60% bonds/40% equity), moderate (60% equity/40% bonds), and moderate with an allocation to the CoRI Indexes (60% equity/40% CoRI exposure), to better understand how various investment strategies may affect their retirement income plan, as well as how much or how little additional annual savings they may need based on the retirement income they want.
The CoRI tool can also help investors see how adding portfolio exposure to the CoRI Indexes may help them progress toward their retirement goals with greater efficiency.
