In addition, as noted above, the sooner you start contributing the greater the potential for reserves to build up which may increase your lifetime income. Is my money safe? We are one of only three insurance groups in the United States to currently hold the highest possible rating from three of the four leading insurance company rating agencies: A. However, TIAA Traditional is designed primarily to help meet your long-term retirement income needs; it is not a short-term savings vehicle.
Therefore, some contracts require that benefits are generally paid in 10 annual or 84 monthly installments and, when lump sums are permitted, impose surrender charges on these withdrawals. These provisions are designed to allow the TIAA General Account, which backs the guarantees and benefits under TIAA Traditional, to invest in longer-term illiquid assets that often offer enhanced returns versus shorter-term, more liquid assets.
Other contracts allow full freedom to withdraw and transfer out of TIAA Traditional but the trade-off for increased access has typically been lower interest crediting rates. TIAA has rewarded participants who save in contracts where benefits are paid in installments over time instead of in an immediate lump sum by crediting higher interest rates, typically 0. For additional information, please check with one of our advisors at What are my retirement income options?
TIAA Traditional allows you to choose from a range of income options that offer flexibility to meet your unique income needs. We have specially-trained consultants who can help you understand all of the lifetime and non-lifetime income options available to you, the impact on your retirement income and the benefits and drawbacks of each.
This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations.
This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio.
Diversification does not protect against market risk. Every effort has been made to ensure the accuracy of the benefits information in this site. However, if any provision on the benefits plans is unclear or ambiguous, the Benefits Office reserves the right to interpret the plan and resolve the problem.
If any inconsistency exists between this site and the written plans or contracts, the actual provisions of each benefit plan will govern. Retirement Savings Plans. Lifetime Annuities A lifetime annuity is the only income option that is guaranteed to last as long as you live. One-Life Annuity With a one-life annuity, you receive an income for as long as you live. Two-Life Annuity This option pays lifetime income to you and an annuity partner spouse or any other person you name for as long as either of you live.
Full Benefits to Survivor You and your annuity partner receive lifetime income. Half Benefit to Second Annuitant You and your annuity partner receive lifetime income. Two-Thirds Benefit to Survivor You and your annuity partner receive lifetime income. Guaranteed Periods With a guaranteed period, if you die under the one-life option or both you and your annuity partner die under the two-life option during the guaranteed period, income continues to your beneficiary for the remainder of the period.
Fixed-Period Annuity You may begin receiving income from your contributions and earnings under a fixed-period annuity at any age once you have terminated employment. There are three types of cash withdrawals: Single-sum partial cash withdrawal You withdrawal a portion of your accumulations and allow the balance to remain in the account to preserve its tax-deferred status.
Lump sum total cash withdrawal If eligible, you may elect to receive your entire account balance in a single, lump sum payment. Systematic Cash Withdrawals This allows you to create your own income plan by specifying the amount and frequency of payment monthly, quarterly, annually, etc.
Payments continue until: You tell TIAA or Fidelity to stop; You change the amount of the payments; You convert the remaining accumulation to a lifetime annuity or to another income option such as minimum distribution; Your money including earnings runs out; You die if you die while receiving systematic withdrawals, the remainder goes to your beneficiary.
Questions About Your Benefits? Limitations The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Benefits Office Contact Us. Stay informed with UHR News. TIAA also offers variable annuities.
These may earn more during the accumulation period, since they're tied to the market, but there's also the risk of losing principal. Thy don't have any surrender charges on withdrawals or transfers. To run this model within the tool, you have to make a hypothetical transfer to the Traditional Annuity. Some participants get concerned that doing so will transfer money, but within the tool, it is only for modeling purposes, and no actual transfers occur.
Not all TIAA customer service representatives have in-depth knowledge of all of the nuances of the income and distribution options, so you may want to enlist the help of a financial planner. Be patient and diligent in your research, and you'll be able to accurately assess and model your options. Accessed Jan. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile.
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