The TIAA loyalty bonus
Why contributing at work can mean bigger checks at retirement
It pays when employees contribute to the TIAA Traditional* fixed annuity through their workplace retirement plan. Why? We've historically offered higher income payout rates to annuitants who’ve maintained a pre-retirement balance in TIAA Traditional. This unique feature is called the TIAA Loyalty Bonus.®
*Issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.
What it is
A reward for saving with TIAA Traditional over the years
Generally, the longer employees contribute to TIAA Traditional in their saving years, the larger the Loyalty Bonus* available should they choose to annuitize. The difference between a Loyalty Bonus income payout rate and a “new-money” rate can be significant: On average, a 30-year contributor to TIAA Traditional has qualified for 15% more annuity income.1
Employees don’t need decades worth of contributions to experience a benefit. The corresponding chart illustrates how only a few years of contributions can meaningfully boost rates available to employees who choose to annuitize.
*Lifetime income payments from TIAA Traditional may include a TIAA Loyalty Bonus which is discretionary and determined annually. Past performance does not guarantee future results.
How it works
Saving consistently in TIAA Traditional has consistently lead to more income for annuitants.
Employees are automatically eligible for the TIAA Loyalty Bonus when they save in TIAA Traditional.
*Your TIAA Loyalty Bonus percentage is the estimated additional amount of lifetime income you could receive at the time of annuitization compared to a new contributor who annuitizes an equal amount at the same time.
Build
Employees are eligible for the TIAA Loyalty Bonus as soon as they begin saving in TIAA Traditional. Contributions are made to TIAA Traditional in the same way they are made to other retirement plan investment options.
Maintain
The TIAA Loyalty Bonus is based on the length of time that funds remain in TIAA Traditional, so keeping and adding to the balance can set up employees for bigger checks.
Receive
At retirement, employees have the option to convert some of their TIAA Traditional balance into lifetime guaranteed income.2 The TIAA Loyalty Bonus is automatically added to annuity payouts when they begin.
Three approaches to retirement income
Even small increases in monthly retirement income add up quickly, which is why TIAA rewards annuitants who have contributed to TIAA Traditional through their workplace retirement plan. In the following examples, we compare the income streams of three hypothetical annuitants.6
Manuel, 67
Withdraws 4% of savings each year
Retirement savings: $200,000
Action: Withdraws 4% annually from his $200,000 retirement savings.
Receives TIAA Loyalty Bonus: No
Year 1 monthly income: $667
Janice, 67
Saves in TIAA Traditional at retirement
Retirement savings: $200,000
Action: Transfers her savings into TIAA Traditional at retirement and activates retirement checks.
Receives TIAA Loyalty Bonus: No
Year 1 monthly income: $1,261
Latif, 67
Saves in TIAA Traditional over 20 years
Retirement savings: $200,000
Action: Saves $200,000 in TIAA Traditional over 20 years and activates retirement checks.
Receives TIAA Loyalty Bonus: Yes
Year 1 monthly income: $1,398
Our commitment
We share our profits with participants, not shareholders.
With no public shareholders, TIAA is uniquely positioned to return profits directly to you—celebrating and rewarding the commitment of TIAA Traditional participants for generations.3
We share profits three ways:
Higher interest rates
Since 1948, TIAA has credited interest above our guaranteed rate so you earn more while saving.
Exclusive TIAA Loyalty Bonus
The TIAA Loyalty Bonus may increase retirement checks when you keep saving in TIAA Traditional over time.
Raises in retirement
TIAA has increased retirement check amounts 18 times in the past 30 years.4
What people ask us.
What is the TIAA Loyalty Bonus?
The TIAA Loyalty Bonus is an exclusive benefit that may be paid to long-term TIAA Traditional contributors like you. It’s the term TIAA uses to highlight the additional income that long-term contributors may receive compared to new contributors if they choose lifetime income (annuitization).
How much is my TIAA Loyalty Bonus?
You can see an estimate of your TIAA Loyalty Bonus at any time by logging in to your online account at tiaa.org and using the
Do I need to do anything to get my TIAA Loyalty Bonus?
Simply by adding to or maintaining your existing TIAA Traditional balance, you may be setting yourself up for a TIAA Loyalty Bonus if you choose lifetime income as your retirement payout option. If you transfer money out of TIAA Traditional or choose not to annuitize, you may forfeit some or all of the TIAA Loyalty Bonus you may have otherwise been eligible to receive.
How is the TIAA Loyalty Bonus paid to me?
The TIAA Loyalty Bonus is included in the payments you will receive when you convert your TIAA Traditional balance to monthly lifetime income. It’s not paid as a lump sum. You can use the
Is my TIAA Loyalty Bonus guaranteed?
While additional amounts of income, including the TIAA Loyalty Bonus, are not guaranteed for future years and will vary, additional amounts have always been a key priority for TIAA. We've given TIAA Loyalty Bonuses for more than 30 consecutive years.
How long do I have to contribute to TIAA Traditional before I'm considered a long-term contributor?
Long-term contributors to
If I have multiple TIAA Traditional accounts with different interest rates, will my TIAA Loyalty Bonus vary between accounts?
The TIAA Loyalty Bonus, if any, is based upon the length of time funds remain in TIAA Traditional. If you contributed to different accounts at different times, the TIAA Loyalty Bonus will vary based on the length of time funds are in each account.
What does “annuitize” mean?
To annuitize, also referred to as annuitization, means turning the savings in your annuity into an income stream. At TIAA we often say “activate retirement checks,” because when you annuitize you can start receiving monthly lifetime income payments.2
Give us a call at 800-732-8353, weekdays, 8 a.m. to 10 p.m. (ET), or schedule an appointment.
Any guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes.
1 Based on an analysis of income benefits available to participants who have made level monthly contributions for 30 years to TIAA Traditional, relative to participants who deposited the same accumulated balance into TIAA Traditional just before converting to lifetime income. Assumes a participant age 67, single life annuity with a 10-year guaranteed period, and average payment differentials each month for retirement dates over the last 30 years ending Dec. 31, 2026. Past performance is no guarantee of future results.
2 Converting some or all of your savings to income benefits (referred to as "annuitization") is a permanent decision. Once income benefit payments have begun, you are unable to change to another option.
3 TIAA may share profits with TIAA Traditional Annuity owners through declared additional amounts of interest during accumulation, higher initial annuity income, and through further increases in annuity income benefits during retirement. These additional amounts are not guaranteed beyond the period for which they were declared.
4 Over the past 30 years, TIAA has given 18 income increases to existing annuitants (as of January 2026).
5 IMPORTANT: The projections or other information generated by the Retirement Income Illustrator regarding the likelihood of various investment outcomes, investment allocations and retirement income are hypothetical in nature, do not reflect actual results and are not guarantees of future results. Results may vary with each use and over time.
6 This illustration is hypothetical and is intended to provide the reader with a general idea of the approximate level of potential change in income based upon the length of time funds are invested in TIAA Traditional. Calculations are based on actual historical results. Assumes Latif contributed $50,000 one time, plus $231 each month to TIAA Traditional Retirement Annuity starting on Mar. 1, 2006, accumulated through Feb. 28, 2026. For Janice and Latif, income is based on a single life annuity with a 10-year guaranteed period at age 67, starting on Mar. 1, 2026. Past performance is not a guarantee of future results. Additional amounts may be declared on a year-to-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.
The 4% rule of thumb used in the illustration assumes the first year’s payment is based on 4% of the same approximately $200,000 final balance used by the TIAA Traditional lifetime income recipients. Under the 4% rule-of-thumb approach, the employee would be responsible for adjusting the amount of their payments each year based on the rate of inflation. During the employee’s retired years, they can withdraw the remaining account balance at any time if it has not been exhausted or it could be left to a beneficiary upon death.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
TIAA Traditional is a fixed annuity product issued through these contracts by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: Form series including but not limited to: 1000.24; G-1000.4; IGRS-01-84-ACC; IGRSP-01-84-ACC; 6008.8. Not all contracts are available in all states or currently issued.
Annuity contracts may contain terms for keeping them in force. We can provide you with costs and complete details.