Transamerica is collaborating with T. Rowe Price and TIAA to expand access to guaranteed lifetime income options.
The partnership blends services and capabilities from all three organizations to create the T. Rowe Price IncomeSelect offering by Transamerica, a product that converts savings into retirement income.
“Retirement planning increasingly requires a thoughtful approach to both saving and income,” said Jason Frain, head of Retirement Solutions at Transamerica, in a statement. “By working with T. Rowe Price and TIAA, we are expanding access to lifetime income in a way that is designed to fit naturally within employer-sponsored retirement plans.”
The IncomeSelect offering are collective investment trusts (CITs) established and maintained by Transamerica Trust Company, a wholly owned subsidiary of Transamerica. Transamerica Trust Company will exercise ultimate fiduciary authority over the management of, and investments made in the funds.
The product is available to eligible retirement plans and is said to address pivotal issues concerning retirement plan savers, like managing longevity risk and understanding how to turn retirement savings into income.
By integrating retirement income along professionally managed investments within a CIT structure, the organizations say they hope to support participants’ long-term financial security while supporting advisors and plan sponsors.
“This collaboration is another step toward a future where every American saver has a clear pathway to retirement income they can count on for life,” said Colbert Narcisse, chief product officer and head of Insurance Solutions & New Markets at TIAA.
The firms believe that expanding access to retirement income products could better prepare individuals in saving for the future.
While adoption remains low, studies conclude that lifetime income can help strengthen retirement security. A whitepaper from BlackRock found that participants who embed a guaranteed lifetime income solution within their target-date fund could see an average 22% increase in spending power.