annuitization
Activating retirement checks pays off.
Activating monthly retirement checks (also called annuitization) gives you access to all the benefits of TIAA and CREF annuities—including an income stream that lasts for life.1,2 Congratulations—you’re on your way to a more secure retirement. Speak to a TIAA financial consultant to ask questions and start the process.
What is annuitization?
Annuitization is the process of turning your retirement savings into lifetime income. At TIAA we often refer to it as “activating retirement checks” because when you annuitize a TIAA annuity, whether fixed or variable, you can begin to receive regular payments that last as long as you live.1
why activate payments
Don’t miss out on potential retirement income.
Get income that lasts your whole life.
Activating payments is the only way to turn your annuity savings into regular retirement payments that will last as long as you live.1,2
Take advantage of all your benefits.
Our annuities have benefits only available after you activate payments. With TIAA Traditional* this could mean bigger retirement checks.3
Protect your loves ones.
As part of the activation process you can choose to cover a spouse or partner and designate a beneficiary.
*Issued by Teachers Insurance and Annuity Association (TIAA), New York, NY.
Get more when you activate payments.
Activating payments is the only way to receive bigger payouts over time and the TIAA Loyalty BonusSM—two ways we share profits with TIAA Traditional participants.3 Long-term TIAA Traditional contributors have received 15% higher checks on average compared with those transferring money in at retirement.4
How it works
How to turn on monthly retirement checks.
TIAA will be your partner throughout this process. We’ll walk you through each step to ensure your retirement income plan addresses your needs.
Talk to us.
If you plan to retire in the next year, give us a call at 888-380-6424. We’re here weekdays, 8 a.m. to 10 p.m. ET. Our retirement income consultants can answer your questions—and, when you’re ready, will partner with you throughout the activation process.
Consider your options.
We’ll help you think through your options, including when, how and how much of your savings to convert into payments.
Create your income plan.
Together, you and your retirement income consultant will create an income plan that’s personalized to your needs.
Receive retirement checks for life.
When the process is done and you’re ready to retire, you’ll begin receiving retirement checks that will last for your whole life.
you're in control
Customize your retirement payments to your needs.
You can choose how much of your savings to convert into payments, when to start receiving income and whether you want to cover a spouse or partner. As the annuity owner, you’ll receive income for life no matter which option you choose.
One life
- Payments: Go to you
- Check amount: Highest monthly income
Two life
- Payments: Go to you and your spouse or partner
- Check amount: Slightly lower monthly income than single life
Beneficiary protection
- Payments: Continue to loved ones after you (or you both) pass
- Check amount: Slightly lower monthly income than joint life
Get the details
Annuity option |
Payments |
Guaranteed period |
Important notes |
One-life |
Payments are made to you for life. |
10-, 15-, or 20-year guaranteed period payable to a named beneficiary after the death of the annuitant. |
Participant must have passed away within the guaranteed period for a beneficiary to be eligible to receive a death benefit.
|
Two-life – Full benefit to survivor |
Payments are made to you for life. Following your death, payments will be made to the second annuitant, if alive, for the remainder of their life. |
10-, 15-, or 20-year guaranteed period payable to a named beneficiary after the death both annuitants. |
Under two- life options, both the first and second annuitants must have passed away within the guaranteed period for a beneficiary to be eligible to receive a death benefit. |
Two-life – 75 percent benefit to survivor |
Payments are made to you for life. Following your death, payments will be reduced to 75 percent of the amount you would have received, and paid to your annuity partner (second annuitant), if alive, for the remainder of their life. |
10-, 15-, or 20-year guaranteed period payable to a named beneficiary after the death of both annuitants. |
Under two-life options, both the first and second annuitants must have passed away within the guaranteed period for a beneficiary to be eligible to receive a death benefit.
(Beneficiary payments will be reduced to 75% percent of first annuitant's payment amount. If payment has already been reduced it will not be reduced further.) |
Two-life – 2/3 benefit to survivor |
Payments are made to you for life. Following your death, payments will be reduced to two-thirds of the amount you would have received and paid to your annuity partner (second annuitant), if alive, for the remainder of their life. |
10-, 15-, or 20-year guaranteed period payable to a named beneficiary after the death of both annuitants. |
Under two-life options, both the first and second annuitants must have passed away within the guaranteed period for a beneficiary to be eligible to receive a death benefit. |
Two-life – Half benefit to survivor |
Payments are made to you for life. Following your death, payments are reduced to half the amount you would have received and paid to your annuity partner (second annuitant), if alive, for the remainder of their life. |
10-, 15-, or 20-year guaranteed period payable to a named beneficiary after the death of both annuitants. |
Under joint life options, both the first and second annuitants must have passed away within the guaranteed period for a beneficiary to be eligible to receive a death benefit.
(Beneficiary payments will be reduced by half of first annuitant's payment amount. If payment has already been reduced it will not be reduced further.) |
Guaranteed period begins when the first annuity payment is made.
Set up regular retirement income.
We can help you create a retirement income plan that works for you. Schedule a meeting to get started.
If you’re retiring in the next 12 months call 888-380-6424 to speak with a retirement income consultant. If you’re retiring in more than 12 months call 800-842-2252 to speak with a financial consultant. We’re here weekdays, 8 a.m. to 10 p.m. ET.
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.
What people ask us.
What does annuitize mean?
To annuitize, also referred to as annuitization, means turning some or all of the savings in your annuity into an income stream. At TIAA we often say “activate retirement checks,” because when you annuitize you can start receiving monthly lifetime income payments.1
How does annuitization impact taxes?
The way annuitization impacts taxes depends on type of account, whether or not your contributions have been deducted previously, the timing of your withdrawals and other factors. Call us at 800-842-2252 for more information.
The tax information contained above isn’t intended to be used, and can’t be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. TIAA or its affiliates do not provide tax advice. Please consult your tax advisor.
What happens at the end of an annuity contract?
At the end of an annuity contract payments stop. What happens leading up to your final payment depends on what kind of contract you have and the choices you made when you purchased the annuity.
For example, if you choose lifetime income, you’ll receive payments until you die. And if you designate a beneficiary, payments will continue to that person after you die, for the amount of time specified in your contract (also called a “guaranteed period”).
What is a guaranteed period?
When you annuitize, you have the choice to select a minimum number of years (10, 15 or 20) of guaranteed payments, which is called a “guaranteed period.” If you (or you and your spouse or partner) pass within the time period you select, retirement checks continue to your designated beneficiary until the end of the guaranteed period. Of course, if you live past the end of the guaranteed period, you’ll continue to receive retirement checks as long as you live.
1Converting 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. Check is the annuity income received in retirement. Guarantees of fixed monthly payments are only associated with TIAA's fixed annuities.
2Any guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes.
3TIAA 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.
4Lifetime income payments from TIAA Traditional may include a TIAA Loyalty BonusSM which is discretionary and determined annually.
Annuity contracts contain terms for keeping them in force. Exclusions, restrictions, limitations and reductions in benefits will, in certain situations, apply to annuity contracts. Your financial consultant or advisor can provide you with costs and complete details.
Annuity contracts contain terms for keeping them in force. Exclusions, restrictions, limitations and reductions in benefits will, in certain situations, apply to annuity contracts. Your financial consultant or advisor 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 1000.24; G-1000.4 or G-1000.5/G1000.6 or G1000.7; 1200.8; G1250.1; IGRS-01-84-ACC and IGRS-02-ACC; IGRS-CERT2-84-ACC and IGRS-CERT3-ACC; IGRSP-01-84-ACC and IGRSP-02-ACC; IGRSP-CERT2-84-ACC and IGRSP-CERT3-ACC; 6008.8 and 6008.9-ACC; 1000.24-ATRA; 1280.2, 1280.4, or 1280.3 or 1280.5, or G1350.
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.
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.