BlackRock aims to overhaul target-date funds within corporate 401(k) plans by introducing more options for employers. The investment manager seeks to make defined contribution plans function more like traditional pensions, providing workers with more predictable retirement income streams. This initiative involves restructuring the standard target-date fund model, which typically shifts asset allocation based solely on a participant's age.

BlackRock's approach would allow plan sponsors to select from a wider menu of investment strategies tailored to specific workforce demographics and retirement goals. The move addresses growing concerns that current 401(k) structures leave too much investment risk and longevity planning on individual employees. By offering more customized glide paths and income-focused options, BlackRock intends to bridge the gap between the portability of a 401(k) and the security of a defined benefit pension.

The changes could reshape how millions of Americans save for retirement, potentially setting a new standard for the $10 trillion defined contribution market.