In a world of unknowns, TIAA promises more retirement security.
Annuities: guaranteed retirement income
TIAA monthly retirement checks offer the assurance you'll have money coming in as long as you live.
Retirement unknowns
No two retirees are on the same path.
But we all want certainty about our money, health and future.
How much money will I need each year when I retire?
Many retirees budget for 70-100% of their total preretirement income during retirement. This assumes some of your expenses will disappear in retirement and 70% to 90% will be enough to cover essentials.1
How long will I live?
We all ask ourselves this question, especially while planning our retirements. The average 65-year-old American adult will live to age 85.2
What will the economy look like when I retire?
It’s impossible to know where the economy will be when you leave the workforce. Savers should build a plan that accounts for a range of eventualities.
Dive deeper: Many retirees live 5 to 10 years longer than they think they will. Learn about longevity.
Guaranteed income
With so many unknowns, guaranteed income offers the assurance you'll have money coming in as long as you live.
There are three ways to receive guaranteed payments during retirement:
Social Security
During your working years, you pay taxes that fund Social Security. When you retire, you get a set monthly amount that can replace part of your income.3
As of December 2023, the average annual Social Security income for a retired individual was $22,860.4
Pension plans
Pensions provide regular payouts after you retire. While common in the past, today they're rare.
Traditional pensions are declining fast. In 1975 70% of retirement plan participants had one, compared to only 12% today.5
Annuities
A retirement annuity is funded by you and often matched by your employer. When the time is right, you can choose to activate lifetime income and turn some of your savings into monthly retirement checks.
Fixed annuity sales rose 300% during 2022 and 2023.6
These can all be good options for retirement.
But only annuities are both widely available and offer flexibility and control through monthly retirement checks.
So what exactly is an annuity?
Learn the basics of annuities, including how they work and what they can do for your retirement financial plan.
How annuities work
With an annuity, you trade in a portion of your retirement savings for monthly checks you'll receive for the rest of your life.
Types of annuities
There are two types of retirement annuities: fixed and variable. They make a terrific team.
FixedTIAA Traditional* |
VariableCREF and TIAA Real Estate |
Fixed & variableUsed together |
|
As you save |
|||
| Guaranteed, predictable growth7 that isn't affected by market performance | |||
| Opportunity for long-term growth based on market performance | |||
In retirement |
|||
| Guaranteed monthly checks for life, even in market downturns | |||
| Variable monthly checks for life that can go up and down with the market | |||
| For you, if you're looking for | Guaranteed growth while saving and steady retirement checks | Variable growth while saving and retirement checks that go up or down with the market | A diverse growth and income strategy |
*Issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.
Let's take a look at our flagship annuity, TIAA Traditional, as an example.
Annuities have two phases.
Step one
First, you save.
After choosing an annuity that aligns with your retirement goals, in this case TIAA Traditional, you begin contributing money through an employer's plan, like a 403(b), or on your own, through an IRA.
Step two
Your savings accumulate.
Your annuity savings can grow two ways: through contributions and by earning interest. With a fixed annuity, you can never lose money. The time during which you're saving is called the accumulation phase.
Step three
Then, you annuitize.
When the time is right, you can choose a portion (or all) of your annuity savings to convert into a monthly retirement check.
This is called the annuitization phase.
Step four
And collect your checks.
With a fixed annuity like TIAA Traditional you can receive monthly retirement checks for as long as you live, providing income you and your loved ones can count on.
Let's take a look at our flagship annuity, TIAA Traditional, as an example.
Annuities have two phases.
Step one
First, you save.
After choosing an annuity that aligns with your retirement goals, in this case TIAA Traditional, you begin contributing money through an employer's plan, like a 403(b), or on your own, through an IRA.
Step two
Your savings accumulate.
Your annuity savings can grow two ways: through contributions and by earning interest. With a fixed annuity, you can never lose money. The time during which you're saving is called the accumulation phase.
Step three
Then, you annuitize.
When the time is right, you can choose a portion (or all) of your annuity savings to convert into a monthly retirement check.
This is called the annuitization phase.
Step four
And collect your checks.
With a fixed annuity like TIAA Traditional you can receive monthly retirement checks for as long as you live, providing income you and your loved ones can count on.
Dive deeper: Tackling four common annuity myths.
Annuities and your plan
Remember, annuities are one part of a bigger picture.
A strong retirement strategy includes a range of investment types—each with a unique purpose.
During your working years, your annuity can add stability and growth potential to your investments.
Once you retire, the income from your annuity can guard against key risks like outliving your savings, market downturns, inflation or cognitive decline.
Guaranteed sources
Guaranteed sources, like fixed annuities, can provide a dependable stream of income in retirement.
Real estate
Real estate returns are typically less affected by the stock market, which can help lower your portfolio risk.7
Stocks
Stocks can offer high growth potential but generally come with high volatility and risk.
Fixed income
Fixed-income investments, like bonds, are generally less risky than stocks.
Dive deeper: See how having a variety of investments may benefit you.
Why TIAA annuities stand apart.
Get to know our retirement annuities, plus learn how TIAA shares profits with our customers.
Meet our offerings
There are many annuities out there. TIAA's are unlike any other.
We offer both fixed and variable retirement annuities. They deliver a wide variety of investment options that may help you diversify your portfolio and reduce your risk—and deliver income that lasts as long as you live.
Fixed annuity
TIAA Traditional
Guaranteed growth while you save and income you can count on for life.
- Grows as you save, no matter what's happening in the market
- Guaranteed monthly retirement checks that never go below a set amount
- Opportunity for additional interest and income through TIAA profit sharing
Variable annuity
CREF
Low-cost growth that helps protect a portfolio from long-term inflation.
- Harnesses market growth opportunities
- Guaranteed monthly retirement checks that vary in amount8
- Among the lowest fees in the industry9
Variable annuity
TIAA Real Estate
Growth potential meets diversification.
- Commercial real estate returns tend to be less affected by the stock market7
- Guaranteed monthly retirement checks that vary in amount8
- Adds diversity to your portfolio
Our fixed annuity
Meet TIAA Traditional
This is TIAA Traditional, our flagship fixed annuity. You get guaranteed growth in your working years, the assurance you'll have money coming in as long as you live and the opportunity for additional income and bigger payouts than your contract guarantees.
Guaranteed growth
The money you put into TIAA Traditional grows every day, no matter what the market does.
Delivering more since 1948
TIAA Traditional guarantees you a set interest rate, but you could earn more. TIAA has credited additional interest on one or more contracts every year since 1948.10
Bigger retirement checks
Because we share profits with you, not shareholders, you have the opportunity for higher amounts, including the TIAA Loyalty BonusSM.
Profits go to you, not shareholders
TIAA has no public shareholders and seeks to give profits back to our participants through higher interest rates, bigger payouts and a TIAA Loyalty BonusSM for long-term savers.
Flexibility and Control
You control whether, when and how much of your savings to turn into a monthly retirement check for life.11
Support loved ones
You can choose to continue paying a spouse or partner if you pass before they do.
Dive deeper: TIAA profits go to you, not shareholders. Learn how you can get more.
Estimate your check
Estimate your monthly retirement check from TIAA Traditional.
To get your monthly retirement check estimate,* fill in the fields below.
*Estimates are based upon hypothetical assumptions. Your results may vary. Calculations are based on TIAA Traditional contracts available within an employer-sponsored plan, not IRAs.
Estimated monthly check amount*
Estimated annual amount*
Your estimates were calculated by combining your contributions, guaranteed growth, plus an additional in
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Our variable annuities
Meet CREF
We created the College Retirement Equities Fund (CREF) in 1952. CREF Stock was the first ever variable annuity. Today, we offer eight CREF investment options covering a range of asset classes, plus TIAA Real Estate, to deliver long-term growth potential with the opportunity for lifetime income.10
Growth opportunities
Designed for competitive returns during your career and in retirement.
Performance meets purpose
CREF offers access to Social Choice—a one-stop responsible investment with some of the lowest costs in the industry.9
Low costs
Expenses among the lowest in the industry plus management by a global investment leader.9
No profit
CREF accounts operate at cost and without profit, so more money goes to work for you.
Built-in lifetime income
Flexible lifetime income features with ongoing growth opportunities to fight long-term inflation.
Flexibility and choice
From stocks to bonds to social good, choose which CREF accounts you want to invest in. You can change your choice at any time, without penalty.
Unique benefit
With other annuities, once you begin receiving checks you can't go back. With our Income Test Drive, you can try out getting monthly retirement checks to see if variable annuity income is right for you.10
No fee or penalty
There is no fee to participate in Income Test Drive.12
Add a guaranteed source of income to your retirement plan.
Learn about the ways you can set aside money for your monthly retirement checks, and, when you're ready, how your checks will arrive during retirement.
Ways to get started
Saving with a retirement annuity is easy.
Choose your investments
Select the retirement annuity options that are right for you—TIAA Traditional, CREF, TIAA Real Estate or a mix.
Start contributing
Many people put a portion of their savings into the annuity when they open it. You can also begin with your initial contribution.
Get TIAA support
Our experts can help you achieve your retirement goals.
Annuity payout options
We give you control over your retirement checks.
Tailor your payments
You decide how much to convert—a little, a lot or somewhere in between.
Cover a spouse or partner
Choose lifetime income for just yourself, or include your spouse or partner as a second recipient.
Choose your timing
Retiring early? You can activate payments right away or let your balance grow for more income later.11
Protect loved ones
Set a beneficiary to receive income after you and your spouse or partner dies.
Select your timeframe
Set a “guaranteed period” to receive checks. If you pass within that time, checks go to your beneficiary until the guaranteed period ends.
Select a different option
Your annuity contract may include alternatives to lifetime income payments, which could help during emergencies or income gaps.
Protect your future income today.
Here's how you can get started with TIAA based on your career stage and employer offering.
Take action
Tell us about you to see your next steps.
Your career stage:
Does your employer offer TIAA in your benefits?
Your next steps:
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.
Investment products may be subject to market and other risk factors. See the applicable product literature or visit tiaa.org for details.
All guarantees are based on TIAA’s claims-paying ability. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes.
Retirement payments refers to the annuity income received in retirement. Guarantees of fixed monthly payments are only associated with TIAA's fixed annuities.
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.
TIAA may provide a Loyalty Bonus that is only available when electing lifetime income. The amount of the bonus is discretionary and determined annually.
Annuity contracts may contain terms for keeping them in force. We can provide you with costs and complete details.
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.
Transfers and withdrawals from TIAA Traditional are restricted by its underlying agreements that can affect the liquidity of the product. 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.
A variable annuity is an insurance contract and includes underlying investments whose value is tied to market performance. When markets are up, you can capture the gains, but you may also experience losses when markets are down. When you retire, you can choose to receive income for life and/or other income options.
The real estate industry is subject to various risks including fluctuations in underlying property values, expenses and income, and potential environmental liabilities. In general, the value of the TIAA Real Estate Account will fluctuate based on the underlying value of the direct real estate, real estate-related investments, real estate-related securities and liquid, fixed income investments in which it invests. The risks associated with investing in the Real Estate Account include the risks associated with real estate ownership including, among other things, fluctuations in underlying property values, higher expenses or lower income than expected, risks associated with borrowing and potential environmental problems and liability, as well as risks associated with participant flows and conflicts of interest. For a more complete discussion of these and other risks, please consult the prospectus.
Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
1 Source: TIAA,
2 Source: SSA,
3 Source: SSA,
4 Source: Social Security Administration,
5 Source: TIAA
6 Source: LIMRA,
7 Returns are largely unaffected by movements in stock or bond markets since returns are generated by rental income and changes in property values. For the 10-year period ended December 31, 2022, REA correlation to the S&P 500 Index and Bloomberg U.S. Aggregate Bond Index was -0.20 and -0.36, respectively. Over this same period, correlation between the FTSE Nareit All Equity REIT Index and the S&P 500 Index was 0.77. You cannot invest directly in any index. Index returns do not reflect a deduction for fees and expenses.
8 Other payout options are available. Any guarantees under annuities issued by Teachers Insurance and Annuity Association of America are subject to its' claims-paying ability. Payments from the TIAA Real Estate Account will rise or fall based on investment performance.
9 Source: Morningstar Direct, December 31, 2023. The CREF variable annuity accounts have expense ratios that are in the bottom decile (or 100% below median) of their respective Morningstar variable annuity sub-account category. Our variable annuity accounts are subject to various fees and expenses, including but not limited to management, administrative, and distribution fees; our variable annuity products have an additional mortality and expense risk charge. Please see CREF prospectus for other fees or expenses.
10 TIAA may declare additional amounts of interest and income benefits above contractually guaranteed levels. Additional amounts are not guaranteed beyond the period for which they are declared.
11 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.
12 There are no fees or charges to initiate or stop this feature. However, it’s important to note that your annuity’s balance will be reduced by the income payments you receive, independent of the annuity’s performance. Income Test Drive income payments are based upon the annuitization of the amount in the account, period (minimum of 10 years), and other factors chosen by the participant. If you do not stop the Income Test Drive within the two-year test period, the remaining balance in the account you selected for the Income Text Drive feature will be annuitized in accordance with the selections you made for the Income Test Drive. Annuitization is irrevocable. Any guarantees under annuities issued by TIAA are subject to TIAA’s claims-paying ability. Interest in excess of the guaranteed amount is not guaranteed for periods other than the periods for which it is declared.