Overview
- BlackRock CEO Larry Fink, in an annual letter released Monday, urged letting a slice of Social Security be invested in diversified funds rather than only in Treasurys.
- He said this would not be privatization and pointed to the federal Thrift Savings Plan, a government 401(k)-style program that offers simple index fund choices, as the model.
- Social Security runs on payroll taxes and parks surpluses in U.S. bonds that earned about 2.6% in 2025, a return far below the S&P 500’s roughly 16% gain that year.
- Critics warned that adding stocks would raise the risk of losses and revive privatization fights, and Alicia Munnell said the Cassidy-Kaine fund is a high-risk move with little payoff.
- Lawmakers plan a Senate hearing on Wednesday to review options as SSA projects the retirement trust fund will be depleted in 2032 and benefits could drop to about 79% without a fix.