Press Release

All Americans Gain Access to TIAA Lifetime Income Annuities

Issued by TIAA

Mar. 10, 2025

• 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 –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 AccountOpens in a new window.

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 believesOpens pdf 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 BonusOpens pdf.^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.

^ivSee 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 pioneeredOpens pdf, 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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