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How will you fund your retirement?
Important disclosure information at bottom of page
Many people rely on social security and pensions to provide guaranteed income payments in retirement. But is that enough?
Know what you own
Fixed annuities, like TIAA Traditional, issued by Teachers Insurance and Annuity Association of America (TIAA), can play a valuable role in providing retirement income. They offer guaranteed, tax-deferred growth without market risk. Like Social Security and pensions, TIAA Traditional is designed to help provide lifetime income─steady, reliable payments that you can’t outlive.1
The TIAA Traditional Advantage
Since 1918, TIAA has been on a mission to help our customers reach their financial goals and helping you create a secure retirement is our top priority.
Read about possible withdrawal restrictions. Higher rates are not guaranteed.
Each TIAA Traditional lifetime income payment is made up of two components:
It can pay to stay
Contributing to TIAA Traditional for many years has resulted in higher lifetime income payments because older contributions have built up more reserves which can translate to higher income payout rates. While other fixed annuities may offer one payout rate, TIAA Traditional’s payments may offer different declared rates depending on the time periods that you've owned it. Learn more about our payout rate history.
Let’s take a look at two participants each with $100,000 and both age 65. Jane transferred money into TIAA Traditional just prior to retiring and Harry contributed regularly for 30 years. Over 20 years, Jane received a total of $116,660 from her $100,000 annuity. As a long-time contributor Harry received 27% more, or $147,660 in cumulative income. There is no guarantee that the payments will be higher.
Their contribution history made all the difference in their annual and cumulative lifetime income payments.
* Income payout rates for lifetime annuities issued during January 2017. Calculation based on a monthly payment at age 65, single-life annuity with 10 years guaranteed, using current TIAA dividend mortality and interest as of 1/1/2017. Assumes that Jane transferred money into TIAA Traditional on 12/31/2016. Assumes Harry made 30 years of level monthly contributions retiring 1/1/17.
To view our current income payout rates as well as historical returns, visit Retirement Plan Annuities Performance, select Fixed Annuities and choose the product in your plan.
To learn what your personal lifetime income payout rate is, you can call us today at 888-583-2535.
The potential for annual increases
Even if you just started contributing to TIAA Traditional, you may have the opportunity for increased lifetime income payments. Our two-tiered payment structure combined with the return of reserves makes it possible for us to increase lifetime income payments even after they have started.
TIAA Traditional not only provides guaranteed growth and protection of principal while you’re saving for retirement but the potential for higher amounts of income—and even possible payment increases—in retirement.
Consider TIAA Traditional’s payout track record:
- TIAA has increased retiree lifetime income payments amounts in 14 times since 1995 at an average of more than 1.25% per increase.
- Every year since 1949, TIAA has paid more in lifetime income than our guaranteed minimum amount
* The chart depicts annual income two hypothetical participants received based on a $100,000 investment amount. While the long‐term contributor started with a higher payout because of their contribution history, both investors benefited from the return of unneeded reserves. Over 20 years their lifetime income payments increased by 17‐20%. Compare TIAA Traditional’s payments to a fixed annuity payment that didn’t increase over time.
Industry average source: 1995 issue of Annuity and Insurer magazine, immediateannuities.com/pdfs/as/annuity-shopper-1995-July.pdf as of 5/19/95.
Although this illustration does not represent specific individuals and past performance is no guarantee of future results, the amount of monthly lifetime income payments shown are what participants would have experienced had they taken the actions on the dates described in this example.
The TIAA Traditional Annuity Retirement Annuity (RA) contract form series 1000.24; Group Retirement Annuity (GRA) certificate form series G-1000.4 or G-1000.5/G1000.6 or G1000.7 (not available in all states); Supplemental Retirement Annuity (SRA) contract form series 1200.8; Group Supplemental Retirement Annuity (GSRA) certificate form series G1250.1; Retirement Choice (RC) contract form series IGRS-01-84-ACC; Retirement Choice certificate series IGRS-CERT2-84-ACC; Retirement Choice Plus contract form series IGRSP-01-84-ACC; Retirement Choice Plus certificate series IGRSP-CERT2-84-ACC; Group Annuity (GA) contract form series 6008.8 and 6008.9-ACC; After-Tax Retirement Annuity (ATRA) contract form series 1000.24-ATRA; IRA contract form series 1280.2, 1280.4 (not available in all states and generally no longer issued), or TIAA-IRA-01 and Roth IRA contract form series 1280.3 or 1280.5 (not available in all states and generally no longer issued), or TIAA-Roth-01; and Keogh certificate form series G1350 (not available in all states) are issued by Teachers Insurance and Annuity Association of America, 730 Third Avenue, New York, NY 10017.
Annuity contracts contain exclusions, limitations, reductions of benefits and may contain terms for keeping them in force. A financial consultant can provide you with cost and complete details.
1 All guarantees are subject to TIAA’s claims-paying ability.
2 TIAA Traditional Annuity offers the potential for greater growth through additional amounts, which may be declared on a year-by-year basis by the TIAA Board of Trustees. Such additional amounts, when declared, remain in effect for 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 were declared.
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.
TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes. It is issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.