BlackRock and Voya Financial, two of the most influential players in the retirement and investment landscape, are making waves in 2025 with innovative strategies that are redefining how Americans save and invest for their futures. Their latest moves—ranging from embedding annuity options in retirement plans to launching new exchange-traded funds (ETFs) and attracting high-profile institutional investors—are not only reshaping the industry but also opening new doors for individuals and organizations seeking both security and growth in uncertain economic times.
At the heart of this transformation is BlackRock’s relaunch of its LifePath Paycheck program. According to a recent report published on August 12, 2025, this program weaves guaranteed income solutions directly into defined contribution (DC) plans, a move that’s quickly becoming essential as the Baby Boomer generation faces retirement and market volatility remains a constant worry. BlackRock’s approach is simple but powerful: starting at age 55, a portion of a participant’s target date fund (TDF) assets is allocated to a “lifetime income” category. By age 59½, participants can purchase annuities, securing a steady paycheck for life. This transition from simply saving to ensuring income is a critical gap that many retirees have struggled to bridge.
The backbone of this system is BlackRock’s strategic partnerships with Brighthouse Financial and Equitable Financial. These insurers guarantee the income streams for retirees, providing peace of mind in a way that traditional TDFs have struggled to offer. What sets BlackRock apart is its commitment to cost efficiency: LifePath Paycheck is priced in line with institutional TDFs, sidestepping the high fees that have historically made annuities unappealing for many. With over $1 trillion in TDF assets under management, BlackRock is uniquely positioned to lead this charge. Already, 14 plan sponsors—including major names like Avangrid and Adventist HealthCare—have adopted the program, representing $27 billion in assets. That’s not a small feat!
But the innovation doesn’t stop there. Voya Financial, serving more than 51,000 employers and 6.1 million participants, plays a crucial role in the LifePath Paycheck ecosystem by streamlining the administrative side of annuity purchases. Voya manages rollover IRAs and automates workflows, reducing the friction that often deters both employers and employees from embracing these options.
In 2025, Voya has expanded its reach even further. Its partnership with Blue Owl Capital introduces private market strategies into DC plans through collective investment trusts (CITs), offering participants access to alternative assets like private credit and real estate—asset classes that have traditionally been out of reach for most retirement savers. This move not only diversifies portfolios but also provides the potential for returns that don’t move in lockstep with the stock market.
Voya’s commitment to holistic financial wellness is evident in its other initiatives as well. The company’s collaboration with Savi aims to tackle the burden of student loan debt, while its launch of “MyCompass Blend,” a hybrid active/passive TDF series, offers more tailored investment options. Perhaps most notably, Voya’s Emergency Savings Initiative—developed in partnership with BlackRock and Commonwealth—integrates emergency savings tools into retirement plans. This addresses a pressing issue: individuals without emergency funds are 13 times more likely to make hardship withdrawals from their retirement accounts, undermining their long-term security. By making it easier for participants to build a financial cushion, Voya is tackling one of the root causes of retirement instability.
Industry experts are taking notice. Kelby Meyers of Nestimate Inc. projects that the market for TDFs with annuity components will see significant growth in 2025, driven by regulatory support and demographic trends. For investors, the opportunity is twofold. First, there’s direct investment in the innovators themselves: BlackRock’s LifePath Paycheck has already attracted $27 billion in assets under management from early adopters, and Voya has reported a 52% year-over-year increase in MES plan sales. Second, thematic ETFs—like the Global X FinTech Inclusion ETF (FINX)—offer a way to gain diversified exposure to the broader retirement-income sector.
Yet, as promising as these developments are, they come with caveats. Annuity-based solutions have historically faced regulatory scrutiny, especially regarding fiduciary responsibilities and fee transparency. There’s also the challenge of participant skepticism—many Americans remain wary of annuities due to past mis-selling scandals. However, the new models pioneered by BlackRock and Voya focus on transparency, low costs, and participant control, which may help overcome these barriers.
Meanwhile, BlackRock’s influence isn’t limited to retirement plans. The company’s iShares Bitcoin Trust ETF (IBIT), launched in January 2024 after securing approval from the Securities and Exchange Commission (SEC), has quickly risen to become the largest spot Bitcoin ETF in the market. As of August 11, 2025, it boasted net assets of $87.5 billion. The fund’s rapid growth has caught the attention of some of the most prestigious institutional investors in the country.
Harvard University made headlines recently when its endowment disclosed holding $116.66 million worth of IBIT shares during the second quarter of 2025, according to a filing with the SEC on August 8. As reported by leading ETF analyst Eric Balchunas, Harvard is now the 29th largest holder of IBIT. Balchunas noted, “Endowments are the hardest institution to hook.” Harvard’s portfolio also includes significant holdings in Microsoft ($310 million), Amazon ($234.98 million), Meta Platforms ($120.5 million), Alphabet Inc. ($113.87 million), Nvidia ($104.4 million), and SPDR gold ($101.5 million).
Brown University has followed suit, reporting more than $13 million in IBIT shares in its own SEC filing. Brown’s endowment also holds Blue Owl Capital Corporation shares worth $62.3 million, Blue Owl Capital Inc. shares worth $49.3 million, and SPDR gold shares valued at $12 million. The adoption of IBIT by such storied institutions signals a new era of mainstream acceptance for digital assets, particularly Bitcoin, which was trading at $119,639.91 as of August 12, 2025—down 0.55% on the day, according to Kraken.
These high-profile investments underscore a broader trend: traditional and alternative assets are converging within institutional portfolios, and the lines between savings, income, and holistic financial wellness are blurring. As BlackRock and Voya continue to innovate—whether through guaranteed income for retirees or cutting-edge ETFs—they’re not just launching products; they’re setting the blueprint for the future of retirement and institutional investing.
The financial world is watching closely as these industry leaders rewrite the rules, and the ripple effects are likely to shape the next generation of retirement security and wealth management.
