Tiaa traditional*
Monthly retirement checks for life. Guaranteed.
Millions of Americans have received retirement income with our flagship fixed annuity, TIAA Traditional.1 Join them by sharing the benefits of a retirement promise.
*Issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.
Overview
Money coming in as long as you live. That’s our retirement promise.
Guaranteed growth
While you’re saving, the money you put into TIAA Traditional grows every day, no matter what the market does.
Bigger monthly retirement checks
You can build a TIAA Loyalty BonusSM over time, and we share profits with participants—not shareholders—so you have the potential to receive more income than you’ve been guaranteed.2,3
Flexibility and control
When you’re ready, you can activate your monthly retirement check. You control whether, when and how much of your savings to turn into retirement income.4
How we're different
We've been sharing profits for decades. $3B a year for the past 10 years, in fact.5
TIAA has no public shareholders and can give profits back to our participants through higher interest rates, bigger payouts and a TIAA Loyalty BonusSM for long-term savers.6 This sets TIAA apart from other fixed annuity companies—just one of the many reasons to choose TIAA Traditional.
How it works
Look inside TIAA Traditional.
No matter where you are on your journey—just starting out or nearing retirement—TIAA Traditional can help you retire with security.
First you save
With TIAA Traditional, our flagship retirement annuity, you set aside a portion of your income during your working years.
Your savings accumulate
Your savings will grow every day, no matter what's happening in the market. This is called the accumulation phase.
Activate your monthly retirement check
When you're ready to retire, you can turn a portion of your savings into a monthly retirement check and choose how to receive your money. This is called annuitization.
Get monthly retirement checks for life
If you've chosen lifetime income, TIAA will send you monthly retirement checks for as long as you live.
Next steps
Ready to start securing your retirement today?
Exchange
Swap one or more of your current investments for TIAA Traditional.
Choose future investments
Keep what you have now and add TIAA Traditional for incoming money only.
Rebalance
If you have money invested, realign your entire portfolio by investment type or category. Rebalancing does not protect against loss or guarantee that an investor’s goals will be met.
Open a new IRA
If you don't have access to TIAA Traditional via an employer-sponsored plan, see how you can save in our flagship annuity with an IRA.
Ready to start monthly retirement checks?
If you’re at or nearing retirement, we can help you start guaranteed lifetime income payments.
By the numbers
TIAA Traditional: strength in numbers.
Since 1918, TIAA Traditional has been helping Americans retire with security and continues to perform today.
$3 billion
TIAA has shared an average of $3 billion with participants every year for each of the past ten years.5
33% more to spend
Standard retirement advice is to withdraw 4% of your savings each year. But if you turned a third of your savings into retirement checks and withdrew 4% of the remaining balance, you could have 33% more to spend.7
1,551 centenarians
No matter how long you live, with TIAA Traditional you'll always have money coming in—just ask one of the many retirees over 100 years old who still receive lifetime income payments from TIAA.8
15% bonus
People who consistently contributed to TIAA Traditional received 15% higher lifetime income payments on average (versus those who transferred in equal savings amounts shortly before selecting lifetime income).9
What people ask us.
What does TIAA Traditional guarantee?
TIAA Traditional has four guarantees.
While saving we guarantee:
- Principal protection: You’ll never lose the money you’ve invested.
- Minimum interest rate: Your interest rate will never go below the rate in your contract.
After you’ve activated your monthly retirement checks (also called annuitizing), we guarantee:
- Minimum monthly retirement check size: Your monthly retirement checks will never go below the dollar amount in your contract.
- Lifetime income: Your monthly retirement checks will last for as long as you live.
An annuity can provide guarantees because it’s a type of insurance contract. Like all insurance products, the ability to satisfy guarantees is subject to what’s referred to as the “claims-paying ability” of the insurance company that issues the contract.
TIAA is one of only three insurance groups in the United States to currently hold the highest possible rating from three of the four leading insurance company rating agencies for its stability, claims-paying ability and overall financial strength.10
What are TIAA Traditional’s current rates?
To see your personal TIAA Traditional balances by “interest bucket,” the current guaranteed minimum and total interest rates for each time period, and your personal dollar-weighted average current interest rate,
What are the rules for each kind of TIAA Traditional contract?
View the various characteristics of each TIAA Traditional contract, including minimum interest rate and transfer/withdrawal options at the link below.
Does TIAA Traditional have a fee?
No. You might be thinking of how mutual funds have annual fees, known as an expense ratio, that take a percentage of the money you have in the fund. Fixed annuities, including TIAA Traditional, operate differently. TIAA Traditional is considered an insurance contract, not an investment product, so unlike other financial products, there is no fee or expense ratio.
Does a fixed annuity like TIAA Traditional have tax benefits?
Annuities can come with or without tax benefits. Generally, fixed annuities that are offered through a retirement plan or an individual retirement account (IRA)—like TIAA Traditional—are funded with pretax contributions, which means you don’t owe income tax on the amount of money you contribute to the annuity. Instead, you’ll owe income tax on the money you withdraw, both regular withdrawals from what you’ve saved, or monthly retirement checks after you’ve activated your annuity payments.
A new way to learn about retirement annuities.
TIAA has created a brand-new digital experience to help you understand retirement annuities, including how they work, the difference between fixed and variable and how they can offer assurance that you’ll have money coming in for as long as you live.
We’re here to help.
Give us a call at 800-732-8353, weekdays, 8 a.m. – 8 p.m. (ET) or schedule an appointment.
1. All guarantees are based on TIAA’s claims-paying ability. Past performance is no guarantee of future results.
2. Lifetime income payments from TIAA Traditional may include a TIAA Loyalty BonusSM which is discretionary and determined annually.
3. TIAA Traditional Annuity interest and income benefits include guaranteed amounts plus additional amounts as may be declared on a year-by-year 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.
4. 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.
5. TIAA Annual Statement (2014 – 2023), Page 4, Line 30.
6. 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.
7. The 2025 Annuity Payout Advantage is hypothetical and for illustrative purposes only. The Annuity Payout Advantage calculation uses the TIAA Traditional “new money” income rate for a single life annuity (SLA) with a 10-year guarantee period at age 67 using TIAA’s standard payment method beginning income on March 1, 2025. Individual results may vary. Example: Participants A and B both are aged 67 and had a retirement savings balance of $1 million as of March 1, 2025. Participant A withdrew 4% ($40,000) in year 1. Participant B made a one-time transfer to TIAA Traditional and selected an SLA with a guarantee period of 10 years, starting on March 1, 2025. Participant B received an income rate of 7.9462% ($26,487) on $333,333 annuitized in year 1; Participant B also withdrew 4% ($26,667) from the $666,667 remaining saving balance in year 1. The result ($53,154) is initial income for Participant B in year 1 that is 33% higher than the initial income of Participant A ($40,000). Income rates for TIAA Traditional annuitizations are subject to change monthly. TIAA Traditional Annuity income benefits include guaranteed amounts plus additional amounts as may be declared on a year-by-year basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the "declaration year", which begins each January 1 for payout annuities. Additional amounts are not guaranteed beyond the period for which they are declared. TIAA has paid more in lifetime income than its guaranteed minimum amount every year since 1949. Over the past 30 years, TIAA has given 18 income increases to existing annuitants (as of January 2025). Past performance is not a guarantee of future results. An annuity is a product issued by an insurance company. It is an agreement that comes with a contract outlining certain guarantees. Fixed annuities guarantee a minimum rate of interest while you save and, if you choose lifetime income, a minimum monthly amount in retirement. 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.
8. As of 5/31/2024.
9. 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, singlelife annuity with a 10-year guaranteed period, and average payment differentials each month for retirement dates over the last 30 years ending Dec. 31, 2023.
10. For its stability, claims-paying ability and overall financial strength, TIAA is a member of one of only three insurance groups in the United States to currently hold the highest rating available to U.S. insurers from three of the four leading insurance company rating agencies: A.M. Best (A++ as of July 2024), Fitch, (AAA as of May 2024; TIAA is rated higher than the U.S. government) and Standard & Poor's (AA+ as of May 2024), and the second highest possible rating from Moody’s Investors Service (Aa1 as of September 2023).
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.