It’s time to rethink annuities
For too long, retirement plan conversations centered entirely on saving and not whether those savings would last. Let’s fix that with annuities.
Three important roles for annuities
As sustaining longer retirements becomes more important, so too does finding investments that provide reliable income. Annuities’ role in retirement plan design has been a well-kept secret for years, but that’s about to change.
1. Capital protection
Fixed annuities provide uncommon portfolio resilience for savers. Steady, predictable returns mean lower volatility, lower credit risk and even a little growth you might not find elsewhere.
2. More retirement income
Fixed annuities like TIAA Traditional can give retirees more
spending power than they’d get with the 4% rule.
3. Longevity backstop
Many worry their retirement savings won’t last. Those with an annuity not only worry less but are happier.
Stay ahead of the curve
By including annuities in retirement plan design, you’ve already helped retirees reap their benefits. But you can make getting them easier. Build annuities into the plan’s qualified default investment to help people lock in reliable growth while saving and income for life in retirement.
Explore annuities further
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TIAA Traditional is issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.
Annuities are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Past performance is no guarantee of future results.
Hypothetical examples are based on 67-year-olds selecting single life annuity with a 10-year guarantee period retiring 3/1/2024. The 9.3% payout rate represents a hypothetical long-term contributor and assumes 30 years of level monthly contributions to TIAA Traditional through February 2024. The 7.8% payout rate represents a new money contributor and assumes a transfer into TIAA Traditional on February 29, 2024. This is for illustrative purposes only and is not intended to predict or project performance of any account. Actual returns will vary.
All guarantees are subject to TIAA’s claims-paying ability. Guaranteed minimum payment is based on new contributor.
TIAA Traditional Annuity interest and income benefits include guaranteed amounts plus additional amounts as may be established on an annual basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the "declaration year", which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed beyond the period for which they are declared.
Lifetime income payments from TIAA Traditional may include a TIAA Loyalty BonusSM which is discretionary and determined annually.