Savings
Help your employees retire with confidence
A Retirement Healthcare Plan (RHP) may help your employees by taking some of the worry out of paying for healthcare costs in retirement.
Incorporating retirement healthcare into your total benefits spend may provide better outcomes
Tax-Free Savings
The RHP is a defined contribution retiree healthcare savings plan that complements your retirement plan. The RHP has a triple-tax advantage: All employer contributions are pretax, earnings are tax-free and reimbursements for Qualified Medical Expenses are tax-free.
Improving retirement confidence
Successful retirement plan design is about helping employees feel confident they've accumulated enough savings to cover their expenses for the rest of their lives. By allocating a portion of your overall retirement benefits budget toward healthcare savings, you can help improve employee financial preparedness.
Frequently asked questions about the TIAA RHP
Why should we consider establishing an RHP?
1. Is there a reason to be concerned about employees' ability to pay for healthcare expenses in retirement?
Healthcare in retirement is expensive. On average, a couple needs $366,000 to cover out-of-pocket healthcare costs during retirement.1
2. Are your benefits competitive enough to meet your workforce management objectives?
An RHP enhances your overall retirement benefits package and can aid in the recruitment, retention and timely retirement of your employees.
3. Do you have employees that are entitled to legacy retiree healthcare benefits?
An RHP plan can be designed to replace legacy retiree healthcare benefits and help stabilize benefit costs.
What resources do you offer to help us establish an RHP?
TIAA will provide subject matter expertise, guidance and direction to assist your organization in the design of your RHP to meet your needs. We'll provide sample documents to help you establish the RHP and the underlying trust that will hold the assets, including:
- Draft Plan Document
- Draft Summary Plan Description
- Draft Trust Agreement
And our client service teams will work together to help deliver a seamless experience for you and your employees.
Get in touch
We're here to help
Plan sponsors
Call your TIAA relationship manager or call the administrator telephone center. Weekdays, 8 a.m. − 8 p.m. (ET)
Consultants
We're here to help you serve your clients and expand your business.
1 Employee Benefit Research Institute Issue Brief No. 629, Mar. 6, 2025, “Projected Savings Medicare Beneficiaries Need for Health Expenses Continued to Rise in 2024”.
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.
Interests in any retiree healthcare plan discussed herein are offered solely by the employer.
Teachers Insurance and Annuity Association of America (TIAA) will provide services to the plan and may issue plan communications on behalf of the plan sponsor, in its capacity as a plan record-keeper.
TIAA Trust, N.A. provides investment management, custody and trust services.