According to a recent LinkedIn post from Cornerstone Financing, new BlackRock research indicates that embedding guaranteed lifetime income into retirement design could increase potential retirement spending by roughly 22% across income levels. The post raises the less-discussed issue of how to fund such income guarantees.
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The company’s LinkedIn post highlights that some advisors are considering home equity, rather than portfolio liquidation, as a funding source for these income strategies. This approach could allow assets under management to remain invested while still securing a predictable retirement income stream.
For investors, the post suggests a potential shift in advisory practices toward integrating housing wealth more systematically into retirement planning. If this trend gains traction, it may support growth opportunities for firms positioned around home-equity solutions, retirement income products, and advice models that seek to preserve AUM while enhancing client cash flows.
The emphasis on using “the house as a funding source, not the portfolio” also implies possible cross-industry effects involving mortgage, reverse-mortgage, and insurance providers. Over time, broader adoption of such strategies could influence revenue mix and product demand for financial institutions participating in retirement-income and home-equity ecosystems.