Why build a diversified retirement income plan?

A guiding principle in saving for retirement is to diversify your assets among a variety of investments to help reduce your exposure to market risks. Diversification is a technique to help reduce risk but it is now guaranteed to protect against lost.
The same principle holds true for taking income in retirement. Creating an income plan that includes money from different sources can help you cover the expected and unexpected risks that can come with retirement.
Different income sources to meet different retirement needs
You may retire, but your expenses don’t. There are still everyday bills to pay, plus unexpected costs that can sneak up on you. And there are other concerns that retirement brings, like outliving your savings, withdrawing money in a down market, managing your finances as you get older and the long-term impact of inflation.
The following chart lists the different sources you can use to create income in retirement. Combining these sources to create a diversified plan can help you better protect your income against the risks retirement can bring.
Annuities: lifetime income with the potential to grow
As pensions become a thing of the past and Social Security replaces only a portion of your paycheck, many people are turning to annuities in an effort to ensure income that lasts their entire lifetime. An income plan that includes lifetime income from both fixed and variable annuities can offer steady, reliable income for life and the potential for continued growth.
Do you know what’s in your employer plan?
Your employer may offer fixed and variable annuities that can strengthen your retirement income plan and address the needs and risks you may face in retirement. Annuities found within employer retirement plans are often lower priced than their retail counterparts.* 
* Lower expenses do not necessarily result in higher returns.
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Annuity contracts contain exclusions, limitations, reductions of benefits and may contain terms for keeping them in force. We can provide you with costs and complete details.
1 Fixed annuity guarantees are based on the claims-paying ability of the issuing company.

2 There are risks associated with investing in securities including possible loss of principal. Variable annuities are suitable for long-term investing, such as retirement investing. Withdrawals prior to age 59½ may be subject to tax penalties and surrender charges may apply. Variable annuities are subject to market risk and may lose value.
This material is for informational or educational purposes only and does not constitute a recommendation or investment advice in connection with a distribution, transfer or rollover, a purchase or sale of securities or other investment property, or the management of securities or other investments, including the development of an investment strategy or retention of an investment manager or advisor. 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 in consultation with an investor’s personal advisor based on the investor’s own objectives and circumstances.
Keep in mind that lifetime income from variable annuities will fluctuate based on the underlying investment performance. Any guarantees under annuities issued by TIAA, including TIAA Traditional, are subject to TIAA’s claims-paying ability. There are risks associated with investing in securities including possible loss of principal.