It is reported that asset manager BlackRock has created a target date fund offering with an annuity for defined contribution pension plans.

The Target Date Income Fund annuity product will be available to 401k plan participants who want to contribute up to 50 percent to an annuity.

The annuity option is a deferred annuity.

BlackRock executives mention that adoption of the annuity option and the related longevity risk hedge would allow participants to invest more aggressively with their remaining assets.