He says the industry must educate savers that they need to turn into investors if growth is to be reignited.
"Worry about the future is drying up short-term savings. Data shows that bank deposits grew three times faster in the first nine months of 2011 than in all of 2010," he explained.
"To finance longer lifespans we must convince individuals to start investing now for the long-term. Their longevity is an asset to be leveraged, not a curse. They must understand that there is a cost to sitting in cash even with low inflation, for individuals and society."
Fink says he is planning for his future by investing 100 per cent in equities.
"That fits my own risk profile, though obviously it’s not appropriate for everyone. Most investors need a more diversified portfolio, but virtually every investor has to find ways to achieve better returns than they’ll get in cash or government bonds for the foreseeable future," he continued.
Fink advises looking at new sources of income, such as dividend paying stocks or higher yielding corporate bonds, or using both passive and active vehicles and alternative investments, depending on their risk profile.
"These are now widely available for individuals through mutual funds and ETFs," he said.
He added that practical regulation across the industry would promote confidence in these products.
"In the fast-growing ETF sector, better labelling would boost investor confidence. We need a tax structure that encourages long-term growth, including a capital gains tax regime that rewards investment over multiple years. The holding period of an investment to qualify for long-term capital gains treatment should be extended to three years from the current 12 months and the rate should decline the longer the investment is held," he said.
Fink stressed that education was the best way to rebuild confidence and tackle the issues facing long-term investment.
"It’s an antidote to today’s short-term preoccupation. A means to filter the day’s headlines and see longer-term patterns, and to adapt to the competitive demands of the information age where even unskilled positions require technological competence," he said.
"We can help rebuild confidence, get markets moving again and restore growth. It is our responsibility as leaders of business, finance and government," he finished.