The Teachers Insurance and Annuity Association of America (TIAA) has offered retirement savings solutions for over a century. Today, the company sells fixed and variable annuities designed to help consumers from all walks of life safeguard their financial futures.
The Carnegie Foundation for the Advancement of Teaching established the Teachers Insurance and Annuity Association of America, commonly known as TIAA, in 1918. Since its inception, TIAA has offered educators the chance to create guaranteed retirement income.
For more than a century, TIAA has served the financial needs of workers in academia, government, medicine and other nonprofit industries. In 1952, the company formed the College Retirement Equities Fund (CREF), and became the first annuity provider to offer a variable annuity product. That product — now known as the CREF Stock Account — gave investors a new way to fight inflation while saving for retirement.
Throughout the past several decades, the company has continued to provide innovative investment solutions, including the CREF Social Choice Account to give consumers a socially responsible investment option and rollover IRAs to make it easier for customers to save for retirement, all in one place.
Today, TIAA helps over 5 million customers plan for their financial future.
Financial strength ratings, also known as credit ratings, give consumers insight into an annuity provider’s financial stability. These ratings are determined by independent agencies such as Fitch Ratings and Standard & Poor’s, so you can be sure you’re getting an unbiased score before you purchase an annuity.
The score tells you how likely a company is to meet its financial obligations to its customers. TIAA has received strong credit ratings from all four of the major credit reporting agencies.
|AM Best||A++ (Superior)|
|Fitch||AAA (Exceptionally Strong)|
|Moody’s||Aa1 (Very Strong)|
|Standard & Poor’s||AA+ (Very Strong)|
Annuity Products Offered by TIAA
TIAA offers two of the most popular types of annuities: fixed and variable. Fixed annuities grow your retirement savings at a guaranteed rate no matter how the economy dips or changes. The key feature of variable annuities is their potential for greater growth to hedge against inflation.
A fixed annuity is the most straightforward kind of annuity. When you purchase a fixed annuity, you put a lump sum of cash away to grow at a fixed rate for a number of years. After the annuity matures, you can begin collecting a steady stream of income payments.
TIAA Traditional is a fixed annuity that provides guaranteed lifetime income once the annuity reaches maturity. The annuity grows at a guaranteed rate regardless of market conditions, ensuring that the purchaser’s savings are protected and will continue to grow.
Variable annuities are like fixed annuities in that they allow a lump sum to grow over time before converting it to a stream of income payments. However, the rate at which your retirement savings will grow in a variable annuity is not guaranteed like it is with a fixed annuity.
When you purchase a variable annuity, the lump-sum payment is allocated to an investment portfolio. The growth of the annuity is then tied to the growth of the investments in your portfolio. You may also be able to put some of the money in an account with a fixed interest rate, so you’re guaranteed to have some growth no matter what the market does.
TIAA provides three types of variable annuities. The company’s CREF accounts let consumers choose how to diversify their annuity’s portfolio among domestic and international markets. The TIAA Real Estate Account offers investors exposure to commercial real estate. And the TIAA Access annuity allows customers to invest in mutual funds within an annuity for tax-deferred savings.
TIAA offers a wealth of resources through its website’s financial education center. Consumers can find articles on a wide variety of personal finance topics. There’s also an FAQ library for the most common questions about forms, taxes, contributions and other support issues.
The company also offers interactive tools to help people make financial decisions.
- Retirement Calculator
- Lifetime Income Calculator
- Early Withdrawal Calculator
- IRA Finder
- Roth IRA Conversion
- Tax-Deferred Contributions Calculator
- Annuity Cost Savings Calculator
- Asset Allocation Evaluator
- Debt Illustrator
- Retirement Budget Worksheet
TIAA customers can access relevant forms on the website and join live webinars offering professional knowledge on a range of financial topics
Any information offered about the company above is provided free of charge and individual product offerings are verified and accurate as of publication.
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- TIAA. (2022, March 31). Financial Strength: The TIAA General Account. Retrieved from https://www.tiaa.org/public/pdf/performance/retirement/profiles/TIAA_Gen_Act_Fin_Strength.pdf
- TIAA. (n.d.). Financial Education. Retrieved from https://www.tiaa.org/public/learn
- TIAA. (n.d.). Retirement Calculators & Financial Tools. Retrieved from https://www.tiaa.org/public/tools-calculators
- TIAA. (n.d.). TIAA Retirement Annuities. Retrieved from https://www.tiaa.org/public/retire/financial-products/annuities
- TIAA. (n.d.). TIAA Traditional Annuity. Retrieved from https://www.tiaa.org/public/retire/financial-products/annuities/retirement-plan-annuities/tiaa-traditional-annuity
- TIAA. (n.d.). Who We Are. Retrieved from https://www.tiaa.org/public/about-tiaa/why-tiaa/who-we-are