Press Release

Participation in TIAA’s Lifetime Income Solutions Accelerates as Plan Sponsors Embrace Annuity-Embedded Defaults

Issued by TIAA

Apr. 1, 2026

In 2025, younger workers showed the highest rates of participation increases, driven by intentional plan design amid growing demand for lifetime income

NEW YORK – Plan sponsors are fundamentally reshaping retirement security for workers of all ages by embedding TIAA lifetime income options in default investments, with Gen Z and Millennial workers showing the sharpest acceleration in participation in 2025.

According to an in-depth analysis of thousands of retirement plans, contributions to TIAA fixed annuities grew across Gen X, Millennials and Gen Z participants in 2025. Notably, the number of Gen Z (born 1997–2012) workers accumulating in lifetime income solutions grew nearly 37% year-over-year, while Millennials (born 1981–1996) saw an increase of 13%.

The growth in younger workers having access to guaranteed lifetime income reflects a fundamental shift in how employers and their fiduciary consultants are approaching retirement planning and responding to what workers actually want. Data from TIAA's American Retirement Confidence Survey found 92% of Americans are interested in a guaranteed source of income (aside from Social Security) to cover day-to-day expenses in retirement, including 88% of Gen Z workers and 94% of Millennials.

"More and more workers of all ages are benefitting from the steady, predictable growth that is offered by TIAA’s flagship fixed annuities, and they’ll also have the option of electing guaranteed lifetime income once they reach retirement,” said Kourtney Gibson, CEO of Retirement Solutions at TIAA. "The prudent decisions plan sponsors and consultants are making today are building a strong foundation of retirement readiness, particularly for younger workers, from the start of their careers, giving them the sense of security that comes from knowing they can have guaranteed income in retirement.”

In 2025, the number of institutions offering TIAA and Nuveen's lifetime income target-date strategies—TIAA RetirePlus and the Nuveen Lifecycle Income (NLI) CIT series—in their default investments jumped 32% year-over-year. Overall, employers incorporating lifetime income in default plan investments increased 16%. (The trustee for the NLI CIT series is SEI Trust Company.)

Recognizing TIAA annuities can make a measurable impact on employees' ability to retire with confidence, institutions are increasingly embedding these solutions directly into their plan designs rather than offering them as discretionary add-ons. Plan sponsors and independent fiduciary consultants put TIAA's annuities through rigorous, ongoing evaluation before incorporating them into retirement plans—a process that has resulted in adoption by some of the nation's most respected institutions.

"Plan sponsors are making lifetime income a central part of their retirement programs," said Colbert Narcisse, Chief Product Officer, Head of Insurance Solutions & New Markets at TIAA. "They understand that retirement readiness isn't just about saving money — it's about having low-cost, customizable income options built directly into the plan. That kind of foundation helps employees retire with confidence."

For additional insights on how early-career savers are redefining financial security, explore TIAA's Financial Essentials content at https://www.tiaa.org/public/learn/financial-essentials/early-career-financial-security-guide.

About TIAA

TIAA aims to provide secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions.ⁱ It paid more than $6.17 billion in lifetime income to retired clients in 2025ⁱⁱ and has $1.5 trillion in assets under management (as of 12/31/2025).ⁱⁱⁱ

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