Generating Income to Last a Lifetime

New TIAA-CREF Study Reveals Factors that Influence Retiree Decisions

Annuities can play a critical role in a retirement income strategy, but relatively few retirees choose to annuitize their retirement savings. What factors influence how retirees manage their savings for income in retirement?

Individuals exposed to annuities through a retirement plan while working are more likely to annuitize once retired, according to new research from the TIAA-CREF Institute. In fact, one-third of annuitized retirees purchased their payout annuity through a defined contribution (DC) plan. And 45% of annuitized retirees who participated in a DC plan with an annuity as an investment option invested in the annuity.

The study also explored the role of advice in shaping a retirement income strategy. Most annuitants (71%) worked with a financial advisor in deciding to purchase an annuity or in implementing the purchase decision. By comparison, annuitization was recommended to only 5% of non-annuitants who consulted an advisor.

For individuals with access to objective advice and sufficient investment opportunities, annuities can be an effective way to accumulate wealth and manage retirement income. Among the primary reasons for purchasing a payout annuity, respondents cited the need for regular monthly income, financial security, and lifetime guarantees. And the majority are pleased with the results: nine of ten (89%) report that they are satisfied with their purchase decision.

Remember that any guarantees associated with an annuity are subject to the issuer's claims-paying ability. Payments from a variable annuity will rise or fall based on investment performance.

For more information about the latest retirement trends and issues, please visit the TIAA-CREF Institute website.

Consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161, or go to for a current prospectus that contains this and other information. Read the prospectus carefully before investing.

TIAA-CREF Institute is a division of Teachers Insurance and Annuity Association (TIAA), New York, NY.

TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.

Annuity products are issued by TIAA (Teachers Insurance and Annuity Association), New York, NY.


© 2014 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017