TIAA Traditional Interest Rates
Rise 13%

NEW YORK - March 02, 2023 – TIAA is increasing interest rates on TIAA Traditional by 13%. This latest increase enhances the retirement security for over 2 million Americans who are accumulating savings through the company’s flagship fixed annuity product. 

TIAA will credit a total of $3.4 billion of additional interest above the guaranteed interest rates in 2023, which is $1.1 billion more in shared profits than credited in 2022. 

This rise in rates follows TIAA Traditional increasing lifetime income benefits for retirees by 3% for 2023.

“TIAA Traditional provides certainty in times of uncertainty,” said Colbert Narcisse, Chief Product and Business Development Officer at TIAA. “It can be reassuring to know that your retirement savings are protected and guaranteed to increase every single day — even in the choppiest markets.i Every decision we make is driven by our mission to provide more secure retirement outcomes for our participants.”

TIAA has credited interest above the guaranteed minimum every year since 1948.ii, iii

In addition, TIAA Traditional has paid more in lifetime income to retired clients than its contractually guaranteed minimum amounts every year since 1949, providing clients who choose to annuitizeiv with a solid foundation of steady, guaranteed lifetime income payments regardless of market conditions.v

TIAA Traditional is unlike other fixed annuities. It offers:

  • Guaranteed Growth and Incomevi: TIAA Traditional provides guaranteed growth during the working years people pay into it, which means the value of money contributed is guaranteed to increase every day – even in the most volatile markets. It also provides guaranteed lifetime income by providing the opportunity to turn savings into regular monthly income to help meet everyday living expenses in retirement. It’s like getting a “paycheck”vii for life when you stop working.
  • Additional Amounts: Along with providing a guaranteed fixed rate, TIAA Traditional offers the opportunity to receive extra interest and income, declared annually at the discretion of the company’s Board of Trustees. TIAA has consistently paid additional amounts for over 70 consecutive years.
  • Loyalty Bonus: TIAA Traditional also offers a unique opportunity for more income for long-term contributors – a loyalty bonus that rewards savers with additional amounts of income when they choose to annuitize based on how long they have been investing.xiii Contributing to TIAA Traditional consistently over a working career can significantly increase lifetime retirement income benefits, with historical average lifetime income advantage of up to 20%.ix

Returning Profits to Clients

TIAA is a private company whose mission is to provide retirement security for educators, healthcare workers, researchers, government employees and others in service. This unique structure, which seeks to return profits to participantsx enables a pure focus on serving its plan clients and their employee participants.

TIAA has paid out over a half a trillion dollars in retirement benefits since its founding.

TIAA has increased rates due to its disciplined approach to managing the TIAA General AccountOpens pdf, which backs TIAA Traditional and invests in a broadly diversified portfolio that enables long-term, competitive returns.

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 providerxi, paid more than $6.4 billion in lifetime income to retired clients in 2021 and has $1.2 trillion in assets under management (as of 12/31/2022).xii

Press contacts 

Elizabeth Anderson
888-200-4062
Media@TIAA.orgOpens Email

 

Annuity contracts contain terms for keeping them in force. Exclusions, restrictions, limitations and reductions in benefits will, in certain situations, apply to annuity contracts. Your financial consultant or advisor can provide you with costs and complete details.

TIAA Traditional is issued through these contracts: Form series 1000.24; G-1000.4 or G-1000.5/G1000.6 or G1000.7; 1200.8; G1250.1; IGRS-01-84-ACC and IGRS-02-ACC; IGRS-CERT2-84-ACC and IGRS-CERT3-ACC;IGRSP-01-84-ACC and IGRSP-02-ACC; IGRSP-CERT2-84-ACC and IGRSP-CERT3-ACC; 6008.8 and 6008.9-ACC; 1000.24-ATRA; 1280.2, 1280.4, or 1280.3 or 1280.5, or G1350.

May not be available in all states.

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.

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.

©2023 and prior years, Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, New York, NY 10017

i Rates vary by contract. All guarantees are based on TIAA's claims-paying ability. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes. Past performance is no guarantee of future results. The rates TIAA credits are quoted as effective annual rates with interest compounded daily and, once declared, remain in effect during the current declaration year (March 1, 2023 – February 29, 2024). This means that funds applied to TIAA Traditional in the current month will be credited with the indicated effective annual rates until February 28, 2023, and that the rates are subject to change starting March 1, 2023.

ii All guarantees are based on TIAA's claims-paying ability. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes.

iii TIAA may share profits with TIAA Traditional Annuity owners through declared additional amounts of interest during accumulation, higher initial annuity lifetime income, and through further increases in annuity income benefits during retirement. These additional amounts are not guaranteed beyond the period for which they were declared. TIAA Traditional Annuity interest and income benefits include guaranteed amounts plus additional amounts as may be established 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.

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

v TIAA may share profits with TIAA Traditional Annuity owners through declared additional amounts of interest and through increases in annuity income throughout retirement. These additional amounts are not guaranteed.

vi Guarantees are subject to the claims-paying ability of TIAA. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes.

vii "Paycheck" is the annuity income received in retirement. Guarantees of fixed monthly payments are only associated with TIAA's fixed annuities.

viii Interest credited to TIAA Traditional Annuity accumulations includes a guaranteed rate, plus additional amounts as may be established 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 for periods other than the period for which they are declared. TIAA may provide a loyalty bonus based on the length of time the funds are held in TIAA Traditional. The loyalty bonus is provided through increases in annuity income throughout retirement and is only available upon annuitization. The amount of the bonus is discretionary and determined by the TIAA Board of Trustees on an annual basis.

ix Based on a study that compared the amount of initial lifetime income that would have been received by two hypothetical participants beginning lifetime income, for each of the 301 months from January 1, 1997, through January 1, 2022. The two hypothetical participants are the same age 67 and they select a single-life annuity with a 10-year guarantee period using TIAA’s standard payout annuity. The career contributor made level monthly contributions to TIAA Traditional under the Retirement Annuity Contract over a 30-year career prior to their retirement date. The new contributor transferred the same final accumulation as the career contributor to TIAA Traditional shortly before selecting lifetime income. Over the study period, the career contributor’s initial lifetime income exceeded that of the new contributor in 291 of the 301 retirement months with an average lifetime income advantage of 15.1%. Their biggest advantage was 29.8% and their smallest advantage was -2.9% (a disadvantage). Over the study’s most recent decade, the career contributor’s initial lifetime income exceeded that of the new contributor in all 120 retirement months with an average lifetime income advantage of 22.4%. Their biggest advantage was 29.8% and their smallest advantage was 17.1%. In the study’s most recent month, the career contributor’s initial lifetime income exceeded that of the new contributor by 17.2%. Past performance is no guarantee of future results.

x TIAA may share profits with TIAA Traditional Annuity owners through declared additional amounts of interest during accumulation, higher initial annuity income, and through further increases in annuity income benefits during retirement. These additional amounts are not guaranteed beyond the period for which they were declared.

xi As of July 21, 2022. Based on data in PLANSPONSOR's 403(b) 2022 DC Recordkeeping Survey, combined 457 and 403(b) data.

xii As of December 31, 2022 assets under management across Nuveen Investments affiliates and TIAA investment management teams are $1,212 billion.