Enhanced tool looks at all sources of retirement income to show people where they stand;Suggests simple steps people can take to feel confident they’re on track for retirement
March 21, 2019 — NEW YORK–(BUSINESS WIRE)–TIAA today announced enhancements to its Retirement Profile tool, a popular feature of the company’s Preparing for Retirement experience. Available to all customers, the tool analyzes an individual’s real-time account information, along with their responses to a handful of simple lifestyle and financial questions, to give them a view of what their income in retirement might look like.
“Too many people live in fear of outliving their savings in retirement,” said Lori Dickerson Fouché, Senior Executive Vice President and CEO of TIAA Financial Solutions. “Tools like Retirement Profile are designed to make retirement planning easier for our customers and help them build confidence in their decisions and knowing they are on track to work toward their financial needs throughout retirement.”
The enhanced Retirement Profile tool shows TIAA annuity customers how the combination of lifetime income – such as fixed and variable annuities, Social Security or pensions – and systematic withdrawals have the potential to yield a steady and guaranteed retirement “paycheck.”
The tool offers individuals three scenarios:
- Current strategy – Estimates whether an individual’s portfolio is “on track” to generate the monthly income they will need in retirement using real-time account data
- TIAA proposed strategy – Suggests strategies to help an individual work toward their goals by adjusting factors like the age at which they start collecting Social Security and how they will draw income from their annuities
- Custom strategy – Provides an interactive “play area” that shows individuals how adjustments to their inputs, such as retirement age, can change their monthly retirement income and likelihood of meeting their annual retirement income needs to help them decide the way forward
The proposed strategy is outlined alongside an individual’s current strategy, illustrating how adding income from annuities may be able to help an individual secure a stream of income in retirement for as long as they live, improving their ability to cover expenses throughout retirement, such as housing, food and healthcare. Participants can also make adjustments to create a custom income strategy by changing their retirement age, Social Security claiming age or the amount of annuity income they want.
Each scenario also includes a “probability of success” indicator to further illustrate whether that particular approach will put them on track to pursue their annual retirement income needs:
- “On track” (80% or higher probability of success)
- “Marginally on track” (75-79% probability of success)
- “Not on track” (74% and lower probability of success)
The Preparing for Retirement experience has helped thousands of participants plan for their life in retirement since its initial launch in 2016. The enhanced Retirement Profile tool is available to TIAA customers via the TIAA website or by calling TIAA’s Advice & Investment Service phone consultants.
With an award-winning1 track record for consistent investment performance, TIAA (TIAA.org) is the leading provider of financial services in the academic, research, medical, cultural and government fields. TIAA has nearly $1 trillion in assets under management (as of 12/31/20182) and offers a wide range of financial solutions, including investing, banking, advice and education, and retirement services.
1 The Lipper Mixed-Assets Large Fund Award is given to the group with the lowest average decile ranking of three years’ Consistent Return for eligible funds over the three-year period ended 11/30/15 (against 39 fund families), 11/30/16 (36), 11/30/17 (35) and 11/30/18 (35). Note this award pertains to mixed-assets mutual funds within the TIAA-CREF group of mutual funds; other funds distributed by Nuveen Securities were not included. From Thomson Reuters Lipper Awards, © 2019 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited. Certain funds have fee waivers in effect. Without such waivers ratings could be lower. Past performance does not guarantee future results. For current performance, rankings and prospectuses, please visit the Research and Performance section on TIAA.org. The investment advisory services, strategies and expertise of TIAA Investments, a division of Nuveen, are provided by Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.
2 Based on $970 billion of assets under management across Nuveen Investments affiliates and TIAA investment management teams as of 12/31/18.
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