We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (22,107)
  • Industry Conferences (2)
  • Industry Job Openings (3)
  • Moore on the Market (495)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (828)
  • Wink's Articles (377)
  • Wink's Inside Story (284)
  • Wink's Press Releases (129)
  • Blog Archives

  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • New Metric Demonstrates the TIAA Annuity Paycheck Advantage in Retirement

    May 14, 2024 by TIAA

    NEW YORKMay 13, 2024 /PRNewswire/ — TIAA, the leader in lifetime income, has launched a new metric—the TIAA Annuity Paycheck Advantage—that demonstrates, in a concise, easily understandable way, the potentially significant additional income new retirees can receive by combining a TIAA annuity with a 4% withdrawal versus using the standard 4% withdrawal rule alone.ii

    “Retirement advice tends to focus on how much to save, but determining how much can be spent safely in retirement is the far tougher problem. The result is that a top retirement fear is outliving savingsiii,” said Kourtney Gibson, chief institutional client officer for TIAA.  “First-year retirees can think of the TIAA Annuity Paycheck Advantage as a new ‘North Star’ that can help them achieve a higher guaranteed payout potential and greater certainty around how much to safely spend in retirement.”

    The TIAA Annuity Paycheck Advantage presents, in percentage terms, the difference between what a first-year retiree can withdraw using a conventional retirement spending formula and what they could get by converting one-third of their retirement savings into lifetime retirement paychecksiv, guaranteed by TIAA through its flagship TIAA Traditional annuity, in addition to taking a 4% withdrawal on the remaining balance. The conventional formula is the so-called 4% rule, under which new retirees who want a reasonable chance to make their savings last for three decades withdraw at most 4% of their savings the first year they retire.

    A 32% Income Advantage in 2024

    For 2024, if a 67-year-old new retiree dedicates one-third of their savings to lifetime income with a 10-year guarantee period through TIAA Traditional and takes a 4% withdrawal on the remaining balance, they will receive 32% more to spend each month in their first year of retirement than if they applied only the 4% withdrawal rate.

    “We can show that a retiree who has opted to annuitize, alongside a 4% withdrawal, has historically been in a better financial position than the person who simply pulled money out of their accounts each year,” said Colbert Narcisse, chief product officer for TIAA.

    TIAA will update the Annuity Paycheck Advantage metric annually to provide current information that demonstrates how lifetime income helps ensure more Americans can retire with security and dignity.

    “In addition to enhancing income, TIAA Traditional offers the opportunity for interest above guaranteed minimums while saving and income above guaranteed minimums while retired. It also offers the opportunity for higher income the earlier and longer one contributes to the annuityv,” Narcisse continued“We believe our metric will help retirement savers feel more confident about their fundamental financial security in retirement.” 

    A Consistent Income Advantage

    The Annuity Paycheck Advantage has been consistent over time, with TIAA Traditional providing an income advantage between 16% and 44%,vi compared with 4% savings withdrawals every month since at least 1994, the year research on the rule was first published.

    “The 4% rule is a starting point and isn’t right for everyone. It also is difficult to apply as one gets older, might require a riskier asset allocation than retires are comfortable with, and under some of the market conditions we have experienced in recent years it may not even have worked,” said Benny Goodman, vice president with the TIAA Institute. “We believe in a more tailored and holistic approach to financial planning and have seen that including some annuitization offers more diversification, with additional safety and security, all while maximizing their total retirement income.”

    For more information click here.  

    About TIAA

    TIAA is a leading provider of secure retirements and outcome-focused investment solutions to millions of people and thousands of institutions. It is the #1 not-for-profit retirement market providervii, paid more than $5.6 billion in lifetime income to retired clients in 2022 and has $1.28 trillion in assets under management (as of 12/31/2023)viii.

    Learn more about TIAA

    Read the latest TIAA news

    X | LinkedIn | Facebook

    ­­­­TIAA Traditional is issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.

    This point of view is designed to be a starting point for the retirement income conversation. It is not a recommendation.

    Annuity contracts may contain terms for keeping them in force. TIAA can provide you with costs and complete details.

    TIAA Traditional is a fixed annuity product issued through these contracts: Form series including but not limited to: 1000.24; G-1000.4; IGRS-01-84-ACC; IGRSP-01-84-ACC; 6008.8. Not all contracts are available in all states or currently issued.

    Retirement paycheck refers to the annuity income received in retirement.  Guarantees of fixed monthly payments are only associated with TIAA’s fixed annuities.

    Any guarantees under annuities issued by TIAA are subject to TIAA’s claims-paying ability.

    TIAA Traditional Annuity interest and income benefits include guaranteed amounts plus additional amounts as may be declared on a year-by-year basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the “declaration year”, which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed beyond the period for which they are declared. 

    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.

    Annuities are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Past performance is no guarantee of future results.

    i The 2024 Annuity Paycheck Advantage is hypothetical and for illustrative purposes only. The Annuity Paycheck Advantage calculations use the TIAA Traditional “new money” income rate for a single life annuity (SLA) with a 10-year guarantee period at age 67 using TIAA’s standard payment method beginning income on March 1, 2024. Individual results may vary. Example: Participants A and B both had a retirement savings balance of $1 million as of March 1, 2024. Participant A withdrew 4% ($40,000) in year 1. Participant B made a one-time transfer to TIAA Traditional and selected an SLA with a guarantee period of 10 years at age 67, starting on March 1, 2024. Participant B received an income rate of 7.8% ($26,000) on $333,333 annuitized in year 1; Participant B also withdrew 4% ($26,667) from the $666,667 remaining saving balance in year 1. The result ($52,667) is initial income for Participant B in year 1 that is 32% higher than the initial income of Participant A ($40,000). Income rates for TIAA Traditional annuitizations are subject to change monthly. TIAA Traditional Annuity income benefits include guaranteed amounts plus additional amounts as may be declared on a year-by-year basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the “declaration year”, which begins each January 1 for payout annuities. Additional amounts are not guaranteed beyond the period for which they are declared. TIAA has paid more in lifetime income than its guaranteed minimum amount every year since 1949. Over the past 30 years, TIAA has given 19 income increases to existing annuitants (as of January 2024). Past performance is not a guarantee of future results. An annuity is a product issued by an insurance company. It is an agreement that comes with a contract outlining certain guarantees. Fixed annuities guarantee a minimum rate of interest while you save and, if you choose lifetime income, a minimum monthly amount in retirement. 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.

    ii The 2024 Annuity Paycheck Advantage uses the income rate on a new money annuitization as of March 1, 2024. TIAA Traditional income rates are subject to change monthly. Additionally, the exact amount of spending money available to both a retiree who uses a withdrawal strategy and one who combines that with an annuity of one-third of their portfolio may rise or fall in subsequent years based on the performance of financial markets and annuity income rates.

    iii Cerulli Associates, “The Cerulli Edge Retirement Edition,” Second Quarter 2023

    iv Example assumes taking withdrawals on the remaining balance.

    v Lifetime income payments from TIAA Traditional may include a TIAA Loyalty BonusSM which is discretionary and determined annually.

    vi Bengen, William P. 1994. “Determining Withdrawal Rates Using Historical Data.” Journal of Financial Planning 7, 4 (October): 171-180.

    vii As of July 21, 2022. Based on data in PLANSPONSOR’s 403(b) 2022 DC Recordkeeping Survey, combined 457 and 403(b) data.

    viii As of December 31, 2023, assets under management across Nuveen’s investment specialists and TIAA investment management teams are $1.28 trillion.

    QPS-3539211PM-O0424X

    SOURCE TIAA

    Originally Posted at PR Newswire on May 13, 2024 by TIAA.

    Categories: Industry Articles
    currency