First, over the last 22 years, retirees who chose lifetime income have seen their payment amounts increase 14 times at an average of more than 1.25% per increase, without ever experiencing a decrease.1
Second, long-term contributors to TIAA Traditional have typically received higher levels of lifetime income than new contributors.2
These are unique benefits, consistent with our non-profit heritage and made possible by our unwavering commitment to help deliver outcomes that matter to our clients.
The effect of these benefits is shown in the chart below which reflects two hypothetical participants with equivalent ending account balances of approximately $100,000 who retire at age 65 and select the same single life annuity with a 10-year guarantee period using TIAA’s Standard payout annuity where payments begin on 1/1/95. One participant (dark blue line) accumulated within TIAA Traditional’s Retirement Annuity contract making level monthly contributions of about $67 per month over a 30-year career. The other (light blue line) transferred the same $100,000 into TIAA Traditional on 12/31/94. The career contributor received more initial lifetime income, in part, because of TIAA’s return of contingency reserves that have built up on older contributions. The chart also reflects any post-retirement increases in lifetime income, also as a result of returning these reserves. The area between the lines shows the career contributor’s lifetime income advantage of contributing to TIAA Traditional consistently.3