'That's a Lot' — Billionaire BlackRock CEO Larry Fink Says People Need $2.08 Million to Retire Comfortably, But 'Almost No One Is Close'

Most people think building a nest egg is the hard part. But according to billionaire BlackRock CEO Larry Fink, the real challenge is what comes after.

"When we took the average of the responses, it was just over $2 million—$2,089,000, to be exact," Fink wrote in his 2025 annual letter to investors earlier this week. "That's a lot. More than I was expecting. And almost no one is close."

The number came from a January survey BlackRock conducted, asking Americans how much they thought they'd need to retire comfortably. The average response? Over $2 million.

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Now pause for a second. Here's what people actually have. A 2024 survey from Prudential found that Gen Xers have a median of just $47,950 saved. 

And it gets worse. A 2023 study from the National Institute on Retirement Security found the typical Gen X household had just $40,000 in retirement savings. While the average balance reported in a Bankrate survey is $153,300, that figure is often skewed by higher earners with large accounts. 

So when Fink says, "That's a lot… and almost no one is close," he's not exaggerating. Even older Gen-Xers, now just a few years from retirement, are falling short. As Fink noted, 62% have saved less than $150,000.

"We're going to need better ways to boost portfolios," he said. One option? Private assets—like real estate and infrastructure—which Fink says have long helped pension funds outperform traditional 401(k)s. On average, pensions earn about 0.5% more per year than 401(k)s, thanks in part to those asset classes.

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"Half a percent doesn't sound huge," Fink explained. "But over 40 years, it adds up. An extra 0.5% in annual returns results in 14.5% more money in your 401(k)." That's the difference between scraping by and retiring on your own terms—or as Fink put it, "nine extra years hanging out with your grandkids."

But while pensions have embraced private assets for decades, most 401(k)s still haven't. 

Fink blames unfamiliarity, rigid plan structures, and a lingering perception that these investments are too opaque or illiquid.

"When you invest in private assets—like a bridge, for example—you can't withdraw your money whenever you want," he said. "It's a bridge, after all—not a stock."

Fink believes that's starting to change. BlackRock has been working to bring more transparency and liquidity to these markets, and his firm recently introduced LifePath Paycheck—a product that converts 401(k) savings into reliable monthly income.

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In just one year, it's been adopted by six plan sponsors representing 200,000 retirement savers. But Fink isn't ready to declare victory. 

"The problem will only get harder and nastier," he warned, "as the oldest Gen-Xers start to retire."

That echoes economist Bill Sharpe, who famously called the drawdown phase of retirement—the part where you have to figure out how to make your money last—as "the nastiest, hardest problem in finance."

People with pensions don't worry about this. They get a steady monthly check. But 401(k) savers? They're handed a lump sum and told to make it last—without knowing how long they'll live or what unexpected costs might pop up.

Even people who've saved well often play it too safe, afraid to spend. They delay joy. They downsize dreams. And now, with $2 million as the new retirement benchmark, the fear is only growing.

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