Larry Fink warns it’s ‘crazy’ to have retirement age set at 65 | City & Business | Finance

BlackRock chief executive Larry Fink says it is “crazy” to have the retirement age set at 65 as people live longer than ever before.

Fink says the world is facing an impending retirement crisis with people having to stay in work later in life to ensure their savings pot tides them over until death.

Fink outlined his views on retirement in his annual letter that is distributed to BlackRock investors, reports The Telegraph. He said: “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.

“When people are regularly living past 90, what should the average retirement age be?”

Billionaire Fink, who founded BlackRock in 1988, is believed to be one of the most influential voices on the world stage, with his views often setting the tone for business discussions around the world.

The 71-year-old now fears not enough is being done to make sure people have enough money to retire. He says “urgent” action is required to help build up pension pots.

Fink says he wanted to “start having the conversation” about retirement as the demographics around the world shift towards rapidly aging populations. He believes countries need to develop a capital market to help pay for retirees, similar to the United States.

He added: “As a society, we focus a tremendous amount of energy on helping people live longer lives. But not even a fraction of that effort is spent helping people afford those extra years.”

According to projections from the United Nations, one in six people across the globe will be over 65 by 2050. That is a huge increase from 2019, where one in 11 people were in the over 65s demographic.

The UK has seen retirement age slowly creeping up. In addition, the Government introduced an auto enrolment into pensions a decade ago to combat the issue.

The state pension can currently be claimed at 66, although in 2028 it is set to rise to 67. Chancellor Jeremy Hunt has planned to increase it to 68, but plans were shelves due to declining life expectancy.