NEW YORK, FEBRUARY 8, 2021 – Guaranteed lifetime income from TIAA Traditional 1, the flagship fixed annuity issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY, will remain steady for most annuitants, with modest increases for customers who selected graded payments in 2021.
“Our ability to maintain income levels, despite historically low interest rates, is a testament to the firm’s stewardship and financial strength,” said William Griesser, Head of Lifetime Income Solutions. “For more than 100 years – and throughout times of unprecedented challenge – we've helped millions of people build a more secure financial future with TIAA Traditional.”
TIAA keeps annuity payments level by investing for the long-term and through the strong capital position of the general account 2, which backs the guarantees and benefits under TIAA Traditional. In 2021, income will remain unchanged for annuitants with standard payments. Graded payment annuitants, those who accepted lower initial income benefits in exchange for higher annual increases, will receive increases that depend on when contributions were made to TIAA Traditional and when income benefits began. 3
About TIAA Traditional
TIAA Traditional is a guaranteed annuity designed to be a core component of a diversified retirement savings portfolio. It dates back to 1918, the year the firm was founded with a $1 million endowment from the Carnegie Foundation.
Contributing to TIAA Traditional can give annuitants the dependability and certainty of a guaranteed lifetime income in retirement that can help cover basic, everyday living expenses without the worry of outliving income. In up and down markets, TIAA Traditional preserves the value of an annuitant’s savings.
With an award-winning 4 track record for consistent investment performance, TIAA (TIAA.org) is the leading provider of financial services in the academic, research, medical, cultural and government fields. TIAA has $1.3 trillion in assets under management (as of 12/31/2020 5) and offers a wide range of financial solutions, including investing, banking, advice and education, and retirement services.
TIAA is one of only three insurance groups in the United States to currently hold the highest possible rating from three of the four leading insurance company rating agencies for its stability, claims-paying ability and overall financial strength. 6