Savings Growth and Lifetime Income in Retirement - Guaranteed

Savings Growth and Lifetime Income in Retirement - Guaranteed

Savings Growth and Lifetime Income in Retirement - Guaranteed

TIAA Secure Income Account

View From the Top

Voice: As you consider your personal financial plan, you're not alone in wanting to live life in retirement on your own terms while making sure you don't run out of money.

Voice: Nearly three-quarters of American workers say they want their retirement savings to give them income for life.

Voice: A new option in your retirement plan helps get you there. The TIAA Secure Income Account can help grow a portion of your savings, and then pay you income for life in retirement. In fact, it's guaranteed.

Voice: Your plan's default investment option allocates a portion of your money to the TIAA Secure Income Account. The account grows your balance with guaranteed interest declared in advance. These interest rates will always be more than or the same as the guaranteed minimum interest rates. This happens every day and even in the most volatile markets.

Voice: This feature preserves the value of your savings and the interest TIAA has already paid you.

Voice: Then when you stop working, you can convert some or all of your savings to retirement income for life—for yourself and a loved one, if you choose. It's like receiving a paycheck for life in retirement.

Voice: The amount you receive from the TIAA Secure Income Account may even be more than what you might get from a typical withdrawal strategy.

Voice: And, we try to give back even more. Our distinctive "sharing the profits" approach can reward you with more lifetime income the longer you contribute; think of it as an "exclusive benefit."

Voice: So contributing earlier can mean higher payouts. And you may see your income increase periodically after your payments begin. Keep in mind that additional amounts may be awarded each year, and are not guaranteed for future years.

Voice: Let's look at how you can make the most of your retirement savings with the TIAA Secure Income Account.

Voice: Here's an example using a simple scenario. Let's assume you saved $500,000 for retirement.

Voice: Using a typical 4% systematic withdrawal approach, you can pay yourself $20,000 a year. However, with this option, payments will stop when your money runs out.

Voice: Now let's look at the same $500,000 a different way. Use $333,000 for lifetime income from the TIAA Secure Income Account. Let's assume a payout of 6% or more, which similar TIAA annuities may guarantee.

Voice: You'll still receive $20,000 a year — but those payments won’t stop — you'll get them for life, regardless of market fluctuations. And you can choose from several options to provide income to your loved ones after you pass.

Voice: Plus you'll have the remaining $167,000 to withdraw at your own pace, save for emergencies, buy something special or maybe help pay your grandchild's education.

Voice: As you can see, it's important to consider which option is best for your situation. Electing to receive lifetime income from an annuity can give you the dependability of knowing you won't outlive your lifetime income or risk running out of money.

Voice: Talk with your HR representative or plan provider to learn more about the TIAA Secure Income Account.

Voice: Having a portion of your savings guaranteed to grow and pay you income for life in retirement can help you be more secure about your financial future and help you retire on your terms.