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TIAA Offers Lifetime Income Option

Service Providers

Available through the DCIO distribution channel overseen by Nuveen, TIAA for the first time is offering its guaranteed lifetime income solutions to the corporate retirement market.

The TIAA Secure Income Account is a deferred fixed annuity that offers a predictable, steady stream of guaranteed income for life in retirement. Plan participants’ contributions are guaranteed to grow over time and are protected from losing value no matter what the market does.

According to a Jan. 20 press release, the TIAA Secure Income Account also provides the flexibility and personalization people have come to expect in their 401(k)s; it is fully cashable during employees’ working years, and they can take the account with them if they leave their employers or the workforce. Employees can choose—but are not required—to turn some or all of their savings into monthly income paychecks for life when they stop working. 

They also have the opportunity for more growth and higher amounts of income the earlier and longer they contribute because of the unique way TIAA shares profits with its individual clients. Lifetime income payments may also increase once people are in retirement, which can help offset the effects of inflation. 

The TIAA Secure Income Account is specifically designed to be used as an allocation within managed accounts or custom target-date model portfolios in 401(k) plans. And as part of a plan’s Qualified Default Investment Alternative (QDIA), it can turn participant inertia into an advantage, enabling plan sponsors to automatically direct plan participants to a product with principal protection, guaranteed growth, low volatility and lifetime income with potentially increasing payments. Employees who choose to annuitize will not pay any expenses or commissions.

The TIAA Secure Income Account is available through the defined contribution investment-only distribution channel overseen by Nuveen, TIAA’s asset manager. It is the first in a series of innovative lifetime income solutions TIAA plans for a variety of retirement savings vehicles, including employer-sponsored and individual IRAs. 

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