TIAA and Nuveen have announced that its target-date lifetime income strategies have now surpassed one million accounts.
“We have what workers are demanding, and we have a 106-year proven track record of paying life-long, guaranteed money to retirees,” said Brendan McCarthy, head of Retirement Investing at Nuveen, the investment manager of TIAA. “Workers in America deserve retirement security. Our solutions clearly show there is no reason employers can’t easily bring back pension-like income for their employees.”
TIAA began offering a custom target-date strategy with embedded TIAA lifetime income inn 2014, now known as TIAA RetirePlus, for its non-profit institutional clients. In 2023, Nuveen introduced Nuveen Lifecycle Income (NLI), an off-the-shelf target-date CIT series with the TIAA Secure Income Account (SIA) embedded for all eligible plan types. These solutions streamline plan administration and allow plan sponsors to deliver lifetime income to their employees in a simple and low-cost manner.
Both RetirePlus and NLI are qualified default investment alternatives (QDIAs) that combine target-date-structure with the option for guaranteed lifetime income. Both firms announced in May that its lifetime income target-date solutions had reached $35 billion.
“Employers worry about the cost of offering a traditional defined-benefit pension plan,” said Kourtney Gibson, chief executive officer of TIAA Retirement Solutions. “But our solutions can offer pension-like income at a low cost to the employer and the employee. This means employees can easily receive the guaranteed income they increasingly demand while reducing costs for employers.”
“Surpassing one million accounts in our guaranteed lifetime income target-date strategies is an exciting milestone, but we are just getting started,” said Colbert Narcisse, TIAA’s chief Product & Business Development officer. “We know that 85% of plan sponsors say employees need more guaranteed income than Social Security will provide. We are working to make that a reality for all Americans.”
TIAA has $1.4 trillion in assets under management (AUM) as of Sept. 30, 2024, while Nuveen holds $1.3 trillion in AUM.
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TIAA, Nuveen Hit $35B with Lifetime Income Solutions
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
