TIAA Institute report finds higher education remains a key driver of economic mobility and financial security with college graduates earning significantly more than high school graduates
NEW YORK (May 22, 2025) – While higher education has perhaps never been under greater scrutiny, the value of its product—a college or graduate degree—has never been higher according to a new report from the TIAA Institute.
The report, Macro Trends and Higher Education: How Colleges and Universities Can Adapt to Create Value in the 21st Century, found higher education continues to offer long-term financial value for students and graduates, including greater economic mobility and improved retirement outcomes. Additionally, college graduates consistently earn more over their lifetimes— data gathered by the Bureau of Labor found college graduates earn approximately 80% more than those with only a high school diploma.
“The report found that a college or graduate degree is an investment that only increases in value over the years,” said Surya Kolluri, head of the TIAA Institute. “Not only does higher education support career mobility and access to higher paying, more stable jobs, it also lays the groundwork for long-term financial health. Higher earners are significantly more likely to have access to employer-sponsored retirement plans, and they tend to accumulate more savings over time – making higher education a key contributor to retirement security in an era of increasing longevity.”
Looking ahead, a degree will remain essential. By 2031, more than half of all U.S. jobs (55%) are projected to require a college degree, while just 6% will be open to individuals without a high school diploma.
Ensuring a Stronger Future for Students and Institutions
The report outlines a path forward for colleges and universities to reinforce their value to students and the economy. Making small changes like clarifying costs by showing how financial aid can make tuition more affordable, to broadening access to online degrees and certificate programs to bridging education and employment by adding career services to academic programs and investing in faculty and student support services can have a big impact.
Challenges Reshaping the Higher Education Landscape
In addition, the report examines how a series of headwinds are reshaping the ways institutions are meeting students’ changing needs, while offering approaches for the higher education community to adapt and affirm its critical role in the modern American economy. Those challenges include:
- Enrollment pressures – College enrollment among recent high school graduates has dropped to below 62% as of 2023, down from a peak of 70% in 2009 due to changing demographic forces.
- Affordability – As tuition costs rise alongside students’ debt burden and declining financial support, families face sticker shock from tuition prices. Yet, misperceptions about the costs abound: Many don’t realize most students pay significantly less after financial aid and institutional discounts.
- Workforce shifts – As the economy rapidly evolves amid innovations in technology, employers are increasingly prioritizing skills and credentials, pressuring institutions to adapt.
- Faculty and institutional strain – Nearly 70% of instructors today are in non-tenure-track roles, reflecting broader workforce instability. Turnover is also on the rise: According to a previous TIAA Institute studyOpens pdf, one-third of higher education employees are considering leaving their institution in the next two years – and of those, 73% would consider jobs outside of higher education entirely.
The full report can be found on the TIAA Institute's website.
About the TIAA Institute
The TIAA Institute* is a think-tank within TIAA, conducting cutting-edge research in the areas of financial literacy and longevity literacy, lifetime income, retirement plan design and behavioral finance in the context of retirement. The Institute provides consulting services for higher education and the broader nonprofit sector. For more information, visit www.tiaainstitute.org.
About TIAA
TIAA is a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions. It shared $5 billion with participants in 2023, on top of the stated guarantees, and has $1.4 trillion in assets under management (as of 3/31/2025)2.