TIAA Data Shows Momentum for Lifetime Income Solutions Among Plan Sponsors
Following an in-depth analysis of thousands of its retirement plans, TIAA today released data that points to a growing market trend: the continued rise of lifetime-income embedded default investments and their impact on retirement plan participants, particularly younger workers.
The data shows plan sponsors are no longer treating lifetime income as an optional add-on. They’re embedding it directly into default plan designs, and the results are showing up most sharply among Gen Z and Millennial workers.
According to the study, contributions to TIAA fixed annuities grew across Gen X, Millennials and Gen Z participants in 2025. Notably, the number of Gen Z (born 1997-2012) workers accumulating in lifetime income solutions grew nearly 37% year-over-year, while Millennials (born 1981-1996) saw an increase of 13%.
“The prudent decisions plan sponsors and consultants are making today are building a strong foundation of retirement readiness, particularly for younger workers, from the start of their careers, giving them the sense of security that comes from knowing they can have guaranteed income in retirement,” said Kourtney Gibson, CEO of Retirement Solutions at TIAA.
“Plan sponsors are making lifetime income a central part of their retirement programs.”
TIAA’s Colbert Narcisse
The growth in younger workers having access to guaranteed lifetime income reflects a fundamental shift in how employers and their fiduciary consultants are approaching retirement planning and responding to what workers actually want. Data from TIAA’s American Retirement Confidence Survey found 92% of Americans are interested in a guaranteed source of income (aside from Social Security) to cover day-to-day expenses in retirement, including 88% of Gen Z workers and 94% of Millennials.
“Plan sponsors are making lifetime income a central part of their retirement programs,” said Colbert Narcisse, Chief Product Officer, Head of Insurance Solutions & New Markets at TIAA. “They understand that retirement readiness isn’t just about saving money—it’s about having low-cost, customizable income options built directly into the plan. That kind of foundation helps employees retire with confidence.”
In 2025, the number of institutions offering TIAA and Nuveen’s lifetime income target-date strategies—TIAA RetirePlus and the Nuveen Lifecycle Income (NLI) CIT series—in their default investments jumped 32% year-over-year. Overall, employers incorporating lifetime income in default plan investments increased 16%.
In a press release today, TIAA said institutions are increasingly embedding these solutions directly into their plan designs rather than offering them as discretionary add-ons, recognizing that annuities can make a measurable impact on employees’ ability to retire with confidence.
New York-based TIAA paid more than $6.17 billion in lifetime income to retired clients in 2025 and had $1.5 trillion in assets under management as of Dec. 31, 2025.
In early March, the Insured Retirement Institute’s 2026 Retirement Security Blueprint called for a lifetime income distribution option to be required as a defined contribution plan feature, recommending that Congress enact a law to mandate it while not requiring that participants include it in their accounts. No bill that would directly accomplish IRI’s objective has been introduced in Congress at this point.
SEE ALSO:
• TIAA, Nuveen Reach 1,000-Employer Milestone with Lifetime Income TDFs
• Vanguard, TIAA Team Up to Launch Target-Date CIT with Built-In Annuity
• IRI Urges Congress to Mandate Lifetime Income Option in DC Plans
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.