All Americans Gain Access to TIAA Lifetime Income Annuities

• More than 55 million Americans don't have access to a retirement plan at work
• Historic expansion of TIAA's mission gives all Americans access to pension-like guaranteed retirement checks for life
• Annuitizing a portion of your savings with TIAA Traditional offers between 33% and 43% more income than a 4% withdrawal strategy

NEW YORK, March 10, 2025 /PRNewswire/ -- TIAA is for the first time making its proprietary lifetime income annuities available to all Americans through the TIAA IRA.  

For over a century, TIAA has provided guaranteed pension-like retirement checks to millions of workers in the nonprofit, academic and medical fields. In 2022, corporate 401(k) plan sponsors and other defined contribution plan types gained access to TIAA's guaranteed lifetime income through the TIAA Secure Income Account.

Now, all Americans have access to TIAA's lifetime income annuities regardless of where they work. In a further expansion of TIAA's mission, new enrollees in a TIAA IRA can select among TIAA's annuities, including TIAA Traditional and the CREF variable annuities. After choosing annuitization, TIAA will send retirees monthly checks for as long as they live.

"We know that steady and reliable income, not a certain dollar amount in the bank, matters most to people when they think about their financial security," said David Nason, chief executive officer of TIAA Wealth Management and Advice Solutions. "TIAA believes having a financial plan for retirement, with holistic financial advice and access to guaranteed investment options, can help provide income in retirement and help millions of Americans retire with dignity."

"The American retirement system is simply not working for far too many people. We are providing a simple solution to the more than 55 million Americans who do not have access to a retirement plan at workⁱ," said Colbert Narcisse, chief product and business development officer at TIAA. "Through the TIAA IRA, Americans have the option for pension-like retirement checks that can help provide certainty they will have money to spend for the rest of their life."

Annuities Can Provide More Income in Retirement

Fixed annuities provide income certainty, and importantly, they can also often provide more income to retirees than a 4% withdrawal strategy. This is known as the TIAA Annuity Payout Advantage.

The metric shows that, in 2025, retirees could earn 33% more money in their first year of retirement than they would if they used the 4% rule alone. For example, a 67-year-old retiree with $1 million in savings could spend $40,000 in the first year of retirement using the 4% rule. But, if the same person used one-third of their savings to provide income from their TIAA Traditional fixed annuity and began receiving payouts on March 1, 2025 (and withdrew 4% of the remaining two-thirds), they would get $53,154 to spend in the first year of retirement—or 33% more income.

For employees who have contributed to TIAA Traditional inside their retirement plan over their working years, the payout rate can be significantly higher. We call this exclusive feature the TIAA Loyalty Bonus.^SMii

The longer someone has saved in TIAA Traditional, the larger their Loyalty Bonus, and the more income they could get when lifetime income payments begin. Future Loyalty Bonuses are not guaranteed but, historically, a plan participant who contributed for the previous 30 years received a 15% larger payout upon annuitizing.ⁱⁱⁱ

This can be significant: Applying the historical average for the long-term Loyalty Bonus to the March 2025 payout rate, a 67-year-old annuitant with $1 million in savings could receive $57,127 per year compared with the $40,000 they would get by making 4% withdrawals alone.

Instead of a 33% Annuity Payout Advantage, they're getting 43% more first-year income.

^iv See table disclosures in footnotes.

How TIAA Stands Apart 

TIAA has no public shareholders and seeks to give profits back to its participants through higher interest rates while saving, bigger retirement payouts through the TIAA Loyalty Bonus^SM, and the potential for income raises in retirement. This sets TIAA apart from other companies.^v

TIAA's flagship fixed annuity, TIAA Traditional, has helped millions of participants build and prepare a solid retirement foundation. It provides guaranteed growth in the saving years, meaning balances go up every day—even in the most volatile markets. When it's time to retire, TIAA Traditional can turn savings into guaranteed monthly income for life.  

Variable annuities, which TIAA pioneered, offer long-term growth potential based on market performance and retirement checks that go up or down with the market. The variable annuities within the TIAA IRA are some of the least expensive in the industry.^vi

TIAA is the only annuity provider that offers a way to test out whether annuity income is right for you. The Income Test Drive^vii allows people to try out receiving lifetime income payments from a variable annuity for up to two years before making a final commitment.

About TIAA
TIAA provides secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions. It paid more than $5.9 billion in lifetime income to retired clients in 2024 and has $1.4 trillion in assets under management (as of 12/31/2024).^viii

TIAA wealth management solutions are offered directly online and through TIAA's Wealth Management advisors and financial planners. TIAA wealth management advisors manage client investments through a range of proprietary and non-proprietary options including IRAs.

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This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual's own objectives or circumstances which should be the basis of any investment decision.

TIAA Traditional and TIAA Secure Income Account (SIA) are fixed annuities issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.  CREF variable annuities are issued by College Retirement Equities Fund (CREF), New York NY.  Each entity is solely responsible for its own financial condition and contractual obligation.  Guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability.    

Annuity contracts may contain terms for keeping them in force.  Contact the issuer for more information about costs and complete details.

Annuities are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income.  Payments from variable annuity accounts are not guaranteed and will rise of fall based on investment performance.

TIAA Traditional Annuity and TIAA SIA interest and income benefits include guaranteed amounts plus additional amounts as may be declared on a year-by-year basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the "declaration year", which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed beyond the period for which they are declared.

Converting some or all of your savings to annuity income benefits (referred to as "annuitization") is a permanent decision. Once annuity income benefit payments have begun, you are unable to change to another option.

TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributes securities products. Advisory services are provided by Advice & Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a registered investment adviser.

Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.  Consider the investment objectives, risks, charges and expenses carefully before investing.  Please call 877-518-9161 or go to www.TIAA.org/prospectuses for current prospectuses that contain this and other information.  Please read the prospectuses carefully before investing.

TIAA Traditional is issued through these contracts: Form series including but not limited to: 1000.24; G-1000.4; IGRS-01-84-ACC; IGRSP-01-84-ACC; 6008.8. TIAA Secure Income Account is issued through these contracts: Form series including but not limited to: TIAA-UQDIA-002-K, TIAA-STDFA-001-NUV and related state specific versions. Not all contracts are available in all states or currently issued.

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SOURCE TIAA