Larry Fink, CEO of BlackRock, predicts a Social Security crisis and considers the age of 65 for retirement to be "a bit crazy."

Larry Fink, BlackRock Chairman, stated that capital markets can address the crisis arising from the increasing difficulty of Americans in funding their retirement as lifespans lengthen, and the need for the government to offer a basic safety net.

Fink highlighted the challenge of financially retiring in the mid-21st Century in his annual letter to shareholders. He suggested that access to investing could help address this issue, while also questioning the validity of the expectation that everyone should receive Social Security benefits at age 65.

"Fink wrote that in America today, the government and companies convey to their workers a retirement message that essentially says, "You're on your own." He emphasized that before his generation fades from leadership positions, there is a responsibility to alter this message."

Nearly half of Americans aged 55 to 65 lack savings in their personal retirement accounts, according to a U.S. Census Bureau survey. Meanwhile, the leader of the investing firm pointed out that tens of millions of Americans work part-time or gig jobs that do not provide clear retirement contribution plans.

The Social Security system's inability to pay full benefits by 2034 is worsening the outlook.

The 71-year-old considers the American retirement system to be in a severe crisis, which he believes is a once-in-a-generation problem that requires immediate action from government and business leaders.

Employers with 401K plans are already auto-enrolling new workers, according to Fink, with hundreds of companies already taking this step.

Fink emphasized that corporations must offer benefits such as fund matching and financial education to their employees, in addition to allowing workers to easily transfer their 401K savings when they switch jobs.

The challenge of improving the retirement system intensifies as lifespans increase, Fink stated. This issue becomes increasingly pertinent as blockbuster weight-loss drugs are already transforming the healthcare industry, he added.

Fink advised examining the topic of Americans accessing Social Security benefits, a delicate issue that politicians tend to avoid.

""It's a bit crazy that our anchor idea for the right retirement age, 65 years old, originates from the time of the Ottoman Empire," he said."