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Many people were surprised to hear that BlackRock is selling annuities. For years, the big investment firms have focused on managing 401(k)s and mutual funds, not lifetime income. So why the sudden shift?
The truth is simple: Americans need steady income in retirement — and even Wall Street knows it.

What’s Really Happening

BlackRock isn’t turning into an insurance company. Instead, they’ve partnered with Equitable and Brighthouse Financial to offer annuities through 401(k) plans. They call this program LifePath Paycheck.

Here’s how it works:

The plan manages your 401(k) money while you’re still working.
As you near retirement, a portion can be used to buy a fixed lifetime income annuity.
The annuity is issued by one of their partner insurance companies, not by BlackRock itself.

So even though the headline says “BlackRock is selling annuities,” what’s really happening is that they’re promoting the use of annuities inside employer plans — but with limited options.

Why This Matters to You

On the surface, this sounds like good news. Big firms are finally acknowledging that retirees need guaranteed income. But there’s more to the story.
When you buy an annuity through a large firm’s program, you may only have access to a couple of companies. That means fewer choices and possibly lower payouts.

Think of it like shopping for a car at a dealership that only sells two brands. You’ll find something that works, but you may not find the best deal.

Comparing the Numbers

Marty used a simple example in this discussion:

Scenario	Annuity Provider	Premium	Annual Income	10-Year Difference
BlackRock Partner Plan	Brighthouse	$300,000	$18,472	—
Independent Search	Nationwide Peak 10	$300,000	$22,313	+$38,000 income

A small difference in monthly income can add up fast:

$3,800 less each year
$38,000 less over 10 years
$77,000+ less over 20 years

That’s the cost of convenience. Choosing the “easy” option inside a 401(k) might mean giving up tens of thousands of dollars in lifetime income.

Why Independence Still Wins

Independent advisors aren’t tied to one or two annuity companies. They can compare dozens of products and find the highest-paying options for your situation.

When you work with an independent professional, you get:

More choices across top-rated insurers
Better payout potential from competitive products
Personalized strategy instead of a one-size-fits-all plan

BlackRock’s plan might look convenient, but independence gives you control — and usually, more income.

The Bigger Picture

The fact that BlackRock is selling annuities shows that even the largest investment firms now recognize their value. Annuities aren’t new or trendy — they’ve provided guaranteed lifetime income for centuries. What’s new is that Wall Street finally wants in.

But while their involvement helps validate annuities as smart retirement tools, it also reminds us to ask an important question:
Who’s really getting the best deal — you or the firm managing your money?

The Lesson: Convenience Isn’t Always Value

The easiest option isn’t always the best one. A small difference in annuity rates can make a huge difference in your retirement income over time. Independence gives you the flexibility to compare, plan, and protect what you’ve worked for.

Take the Next Step

If you want to see how independent planning compares to what big firms are offering, schedule a short call with Marty Becker at AtlasAnnuity.com.
You’ll learn how annuities can fit into your retirement plan — and how to make sure you’re getting the best deal, not just the most convenient one.