TIAA Offers Lifetime Income for Corporate Retirement Market

Secure Income Account Provides Protected Growth and Guaranteed Income for 401(k) and other retirement savings vehicles
Published: Jan. 20, 2022 at 9:00 AM EST

NEW YORK, Jan. 20, 2022 /PRNewswire/ -- TIAA for the first time is offering its guaranteed lifetime income solutions to the corporate retirement market through the TIAA Secure Income Account.

(PRNewsfoto/TIAA)
(PRNewsfoto/TIAA)
Lifetime income solutions have the power to transform defined contribution plans.

Over its 100-year history, TIAA has paid out more than $500 billion in retirement benefits to millions of people working in higher education and other non-profit, purpose-driven fields, never once missing a payment to annuitants through depressions, world wars and major financial-market dislocations. Now, private-sector companies can provide employees with TIAA's unique, pension-like guaranteed income for life as part of their retirement plan.

"People are living longer and need help preparing for a secure retirement, yet few corporate defined contribution plans offer the guaranteed lifetime income they need," said Thasunda Brown Duckett, President and Chief Executive Officer of TIAA. "Building on our heritage, we are offering companies of all types and their employees a solution to more efficiently save, invest and ensure those assets last through retirement."

The TIAA Secure Income Account is a deferred fixed annuity that offers a predictable, steady stream of guaranteed income for life in retirement. Plan participants' contributions are guaranteed to grow over time and are protected from losing value no matter what the market does.

The TIAA Secure Income Account also provides the flexibility and personalization people have come to expect in their 401(k)s. It is fully cashable during employees' working years, and they can take the account with them if they leave their employers or the workforce. Employees can choose – but are not required – to turn some or all of their savings into monthly income paychecks for life when they stop working. They also have the opportunity for more growth and higher amounts of income the earlier and longer they contribute because of the unique way TIAA shares profits with its individual clients. Lifetime income payments may also increase once people are in retirement, which can help offset the effects of inflation. In 2022, for example, many currently receiving income from TIAA fixed annuities are enjoying a 5% increase in their lifetime income payments – the largest bump in 40 years.

TIAA's 2021 Lifetime Income Survey found that more than 70% of workers say they would choose to work for, or stay with, a company that offers access to guaranteed lifetime income in retirement compared to one that doesn't.

The TIAA Secure Income Account is specifically designed to be used as an allocation within managed accounts or custom target-date model portfolios in 401(k) plans. And as part of a plan's Qualified Default Investment Alternative (QDIA), it can turn participant inertia into an advantage, enabling plan sponsors to automatically direct plan participants to a product with principal protection, guaranteed growth, low volatility and lifetime income with potentially increasing payments. Employees who choose to annuitize will not pay any expenses or commissions.

"We know lifetime income solutions have the power to transform defined contribution plans, because it elevates them from simple savings accumulation vehicles into true retirement investing and payout plans," said Colbert Narcisse, TIAA's Chief Product and Business Development Officer. "TIAA is committed to helping create secure retirements for everyone and will continue to pursue this mission through product innovation, advocacy and education."

The TIAA Secure Income Account is available through the defined-contribution investment-only distribution channel overseen by Nuveen, TIAA's asset manager. It is the first in a series of innovative lifetime income solutions TIAA plans for a variety of retirement savings vehicles, including employer-sponsored and individual IRAs. It leverages the investment management expertise of Nuveen, TIAA's asset manager, which has been an income provider for 120 years. Nuveen offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors.

For more information, please visit www.tiaa.org/secure-income.

About TIAA

TIAA is a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions.  It is the #1 not-for-profit retirement market provider, paid more than $3.6 billion to retired clients in 20201 and has $1.3 trillion in assets under management (as of 9/30/2021).2

1 As of Dec. 31, 2020. Based on data in PLANSPONSOR's 403(b) Market Survey, which published in August 2021.

2 Based on approximately $1.3 trillion of assets under management across Nuveen affiliates and TIAA investment management teams as of 9/30/2021.

TIAA Secure Income Account is a fixed annuity product issued through these contracts by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: Form series including but not limited to: TIAA-QDIA-XXX-K and related state-specific versions. May not be available in all states.  Not available in New York. Annuity contracts may contain terms for keeping them in force. We can provide you with costs and complete details.

All guarantees under contracts issued by TIAA are based on TIAA's claims-paying ability.

Interest credited to TIAA Secure Income Account accumulations includes a guaranteed rate, plus additional amounts as may be established on a year-by-year basis by the TIAA Board of Trustees. TIAA may share profits with the TIAA Secure Income Account owners through declared additional amounts of interest and through increases in annuity income throughout retirement.  Additional amounts are not guaranteed for periods other than the period for which they are declared.

About Nuveen

Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.2 trillion in assets under management as of 30 September 2021 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.

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