Rethinking Retirement
In his 2024 annual letter, BlackRock CEO Larry Fink called for a fundamental rethink of how we approach retirement.[2] With people living longer than ever, he warned that millions may risk outliving their savings. According to BlackRock’s research, 51% of Americans are more worried about running out of money in retirement than any other risk. Fink emphasized the need to shift from a savings-only mindset to one rooted in long-term investing. Even a modest 0.5% increase in annual returns, he noted, can grow retirement savings by 14.5% over a 40-year horizon, highlighting the crucial role of capital markets and private assets in closing the retirement gap.[3]
Why Private Markets?
Private market investments such as private equity, private credit, real estate, and infrastructure have consistently delivered long-term returns above those of traditional public markets. According to Bain & Company’s 2024 Global Private Equity Report, global buyout funds generated net returns of 11% to 15% over the past two decades.[4]
These returns, when compounded over 20 to 30 years, can turn disciplined annual investments into multi-million-dollar portfolios, outpacing bank savings or short-term stock market speculation.
The Power of Time
For younger investors, time is their greatest advantage. Through compounding, consistent contributions, especially in high-growth private markets, can lead to meaningful long-term wealth.
Take this example: A 30-year-old investor allocates $50,000 annually to a diversified private market portfolio targeting a 10% average annual return. Here’s how that investment could grow:
In the final 10 years alone, the portfolio grows by more than $6 million, illustrating just how much impact starting early can have on long-term outcomes.
You can model similar scenarios by entering their own financial details into The Family Office’s Retirement Calculator. The tool helps estimate future retirement income and measures progress toward long-term goals. You can easily adjust inputs such as contribution levels, time horizons, and risk appetite, gaining a clearer picture of how early investing influences long-term financial outcomes.
Why Many Miss This Window
In the GCC, saving is second nature. But too often, that capital remains idle in low-yield accounts or concentrated in local real estate. While this cautious approach feels safe, it can quietly erode long-term financial potential.
Inflation diminishes the value of money over time, and delaying investment means missing out on the powerful effects of compounding. The longer wealth stays uninvested, the harder it becomes to catch up later.
Shifting from a savings mindset to an investment mindset is no longer just a good idea, it’s essential for those who want to preserve and grow their wealth in a changing world.
Helping the Next Generation Plan with Confidence
At The Family Office, we’ve developed digital solutions designed to meet the needs of today’s investors, especially those starting early and thinking long term. From defining retirement objectives to exploring private market strategies and monitoring progress over time, our tools support each stage of the investment journey.
With these tools, investors gain a transparent view of their portfolios and the ability to engage with their advisors when it matters most. This ecosystem was built to simplify decision-making, eliminate guesswork, and bring clarity to long-term planning.
We work exclusively with investors starting at $300,000, building globally diversified portfolios across private equity, private credit, real estate, and infrastructure, designed to grow wealth steadily and preserve it across generations.
Investing Early Is a Strategic Advantage
Retirement isn’t just about stopping work. It’s about living with freedom and financial clarity. For young professionals in the GCC, early investing in private markets may be the single most effective way to achieve that vision.
As Larry Fink urged, retirement planning needs a reset. The tools and strategies exist, but it’s up to each investor to start.
With the right guidance and the right investments, retirement wealth doesn’t have to be uncertain. It can be exponential.