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Inflows Into TIAA Traditional Hit 5-Year High
Market uncertainty has shifted investors toward safer investments, the firm says.
Inflows into the Teachers Insurance and Annuity Association of America flagship annuity, TIAA Traditional, reached a five-year high in March, as investors sought safer bets amid market uncertainty.
“It’s important to have a well-diversified investment mix, including a guaranteed asset class, which can help buffer against market volatility,” said Jim Mullery, TIAA’s executive vice president of retirement solutions, in a statement. “Uncertainty in the financial markets can tempt investors to try to ‘time’ the markets, but it’s crucial to step back and seek professional advice before dramatically changing your financial plan.”
Early April data shared by the company suggest continued demand for TIAA Traditional annuities amid ongoing market volatility, including record daily inflows and a monthly average of inflows projected to exceed the previous record set in March 2020.
A TIAA study, which encompassed data from 1973 through 2021, found that when included in a target-date structure, TIAA Traditional outperformed standard target-date funds 63% of the time, with gains averaging 1.7 times greater than losses.
In addition, TIAA Traditional embedded in a target-date structure needed 16% fewer assets than a standard TDF to receive equivalent income, leading to TIAA Traditional retirees holding more assets in their retirement accounts than those with assets invested in a standard TDF, according to the study.
In March, TIAA made its proprietary lifetime income annuities, including TIAA Traditional, available to all Americans through the TIAA IRA.
TIAA paid more than $5.9 billion in lifetime income to retired clients in 2024 and had $1.4 trillion in assets under management as of December 31, 2024.
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