1 of 5
I am enrolled in a workplace retirement savings plan, so I’m on track for financial security after my working years.
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FALSE
TRUE
FALSE
TRUE
FALSE
That could be true. But there’s more you can do to optimize your retirement plan.
“Enrolling in a retirement savings plan is a good step toward building income to last through retirement,” says Gibson. “But if you want to see your money grow, you need to play an active role in saving, managing and protecting your investments.” This means you should consider:
Boosting savings by contributing as much as possible to your workplace plan—and not leaving free money on the table. If your company matches employee contributions, you can capture your plan’s full potential by increasing contributions to maximize the employer match.
Managing your portfolio by seeking expert guidance, whether through your employer or an external firm. When you explore outside advice, firms like TIAA offer plan consultants and advisors who help you build and manage the right retirement plan or digital solutions at your convenience. This insight, particularly in areas such as investment decisions like asset allocation, can help improve retirement outcomes. A recent study by the TIAA Institute and the College and University Professional Association for Human Resources (CUPA-HR) found that 64% of higher-ed employees who followed the professional advice they received reported feeling very confident about having enough money to live comfortably in retirement. Additionally, including a mix of fixed and variable lifetime income sources and other retirement investments to address financial, inflation and other risks you may face in retirement, including running out of money, can help ensure you have a well-balanced long-term retirement portfolio.
Protecting your savings by including a guaranteed asset such as a fixed annuity, like TIAA Traditional1. Fixed annuities provide guaranteed growth and the option for guaranteed lifetime income. “The markets will fluctuate, but fixed annuities like TIAA Traditional are guaranteed to grow, offering some protection from volatility,” adds Gibson.
2 of 5
I make regular contributions to my workplace retirement savings plan—exceeding my employer’s match—so I’m guaranteed to have enough income to last my lifetime.
TRUE
FALSE
TRUE
FALSE
TRUE
FALSE
False. You might not get the most out of your retirement plan if you don’t consider guaranteed lifetime income options.
“Historically, retirees have relied on Social Security and company pensions to cover most retirement expenses,” explains Gibson. “But Social Security only provides about 40%2 of the average worker’s preretirement earnings. With pensions also quickly becoming a thing of the past and people living longer lives in retirement, it’s even more crucial to build savings that last for life.”
Annuities are one form of guaranteed lifetime income. Fixed, in-plan annuities like TIAA Traditional have a guaranteed interest rate, grow regardless of market performance and—if you choose to convert a portion of your savings into income3—deliver retirement checks4 for life. “A low-cost, in-plan annuity can provide stable returns, reduce volatility and offer guaranteed income that can never be outlived,” says Gibson.
3 of 5
In-plan annuities can help protect my savings from inflation and market downturns.
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FALSE
TRUE
FALSE
TRUE
FALSE
True—if you are using both fixed and variable annuities as part of your strategy.
Keep in mind, there are advantages and drawbacks to both kinds of annuities. While fixed annuities like TIAA Traditional can protect against market downturns with their guaranteed principal and rate of return, they don’t allow participants to capitalize on market highs and may not keep up with inflation.
That’s why using them in tandem with equity-based variable annuities like CREF can be an effective approach. Since variable annuities are tied to the market, they allow you to access market performance over time and have historically provided higher returns than fixed investments. At the same time, they’re also subject to down markets, meaning their value can decrease.
“Together, the two types of annuities can help serve as a hedge against market volatility and inflation. It feels good when the markets are high and thriving, but the lows can feel unsettling even to the most seasoned investor,” says Gibson. “That’s why creating a diversified5 portfolio is so important, and including a source of guaranteed funds can take some of the sting out of tumultuous market activity.”
4 of 5
All in-plan fixed annuities have the same benefits.
TRUE
FALSE
TRUE
FALSE
TRUE
FALSE
False. Credited rates and retirement income amounts for annuities vary by issuer. Some products give you an opportunity to get more out of your retirement plan.
With no public shareholders, TIAA is in a unique position to return profits to plan participants through its longstanding TIAA Loyalty Bonus® and raises in income payments6. The Loyalty Bonus® can increase retirement income when participants keep saving in TIAA Traditional over time and elect lifetime income. Long-time savers have gotten 15% more on average7. “People have historically gotten more than the guaranteed interest rate and have the potential to get higher retirement payouts as well,” says Gibson. “All you have to do to receive the Loyalty Bonus® is convert some or all of your TIAA Traditional balance into lifetime income. While not guaranteed, TIAA has given out TIAA Loyalty Bonuses for over 30 years.”
Consider longtime TIAA client Dr. E. Gerald Meyer8, a 105-year-old retired professor and World War II veteran who’s received annuity payments from TIAA Traditional and CREF for over 40 years. Due to TIAA’s sharing-the-profits approach, he received 18 increases to his annuity income over the past 30 years. Plus, because Meyer also invested in equities through CREF, not only does he receive checks for as long as he lives9, but he also benefited from significant growth in his income, which more than offset inflation experienced over the period.
5 of 5
I should invest all my retirement savings in annuities to get the most out of my portfolio.
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FALSE
TRUE
FALSE
TRUE
FALSE
False. It’s important to have a diverse portfolio that includes a variety of investments for different objectives and risk tolerances.
“Saving for retirement is likely the most significant financial commitment we’ll make in our lives,” Gibson says. “Consider savings and investment approaches that can help sustain you for the duration of your retirement. One way to create that sense of security is by creating a diversified portfolio that includes sources of lifetime income, like fixed and variable annuities, that you cannot outlive.”
As Gibson explains, this is where professional guidance can help you take your retirement savings portfolio to the next level. “Consider working with an advice team to help with asset allocation based on your risk tolerance and years to retirement,” she says. TIAA’s wealth management advisors and retirement income consultants, for example, help their clients save, manage and protect their retirement income—perhaps by recommending a diverse mix of fixed annuities, variable annuities and other investments—to navigate market and inflation risks and prepare for longevity.
Even if you are unable to meet with an advisor, you can seek guidance on your own terms via digital tools that provide advice on your phone or tablet. Either way, you can get recommendations to help you manage and protect your retirement assets.
Whether You Aced It Or Scored Low,
These Are Some Actions You Can Take To Build Income You Cannot Outlive
Whatever your quiz result, there are strategies10 for everyone to consider—across all levels of retirement readiness—to help optimize their savings.
Diversify
Strong portfolios generally include a mix of reliability and risk. Fixed annuities can complement higher-risk investments like stocks and bonds, providing some degree of confidence alongside growth-oriented assets. This is where advisors are key, says Gibson.
Save, manage and protect
Think of your retirement plan as a seedling and give it the attention and care it needs to thrive. This may include upping your retirement contributions, seeking expert financial support or investing in lower-risk assets that help shield against economic uncertainty.
Invest in longevity
Don’t underestimate your planning horizon. “Estimating how long we can potentially live in retirement is among the biggest barriers to retirement security,” says Gibson. “We need to think about how to optimize our savings during our working years and how we can replace our income in retirement. A simple way to do this is to consider adding a source of retirement income that you cannot outlive.”
Consider both fixed and variable annuities
Used together, these options are a strong team. Participants can better prepare for volatility with fixed annuities, since they grow daily no matter what happens in the stock market. Variable annuities can provide balance with their long-term growth potential based on investments and market performance.
Explore the perks of TIAA Traditional
You may receive larger retirement checks by allocating a portion of your savings into an annuity as soon as possible. The longer you’re invested, the larger your retirement payouts may be—thanks to TIAA’s Loyalty Bonus®.
1 TIAA Traditional is issued by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New Your, NY. Any guarantees under annuities issued by TIAA are subject to TIAA’s claims-paying ability.
2 Source: Social Security Administration, 2025
3 Converting some or all of your savings to income benefits is an irrevocable decision once benefit payments begin.
4 Retirement check refers to the annuity income received in retirement. Guarantees of fixed monthly payments are only associated with TIAA's fixed annuities.
5 Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.
6 Lifetime income payments from TIAA Traditional may include a TIAA Loyalty Bonus® which is discretionary and determined annually.
7 Based on an analysis of income benefits available to participants who have made level monthly contributions for 30 years to TIAA Traditional, relative to participants who deposited the same accumulated balance into TIAA Traditional just before converting to lifetime income. Assumes a participant age 67, single life annuity with a 10-year guaranteed period, and average payment differentials each month for retirement dates over the last 30 years ending Dec. 31, 2023.
8 Testimonial has been provided by current client, and no direct or indirect compensation was given in return. No material conflicts of interest exist on the part of the individual giving the testimonial, resulting from their relationship with the adviser. Results experienced by individuals may not be representative of the experience of other clients, and there is no guarantee of future performance or success.
9 An investment in CREF Variable annuities is subject to risks related to CREF and any obligations, guarantees or benefits of the Contract are subject to CREF’s overall financial strength and claims-paying ability. There is no guarantee that CREF will always be able to meet its claims-paying obligations, and there are risks to purchasing any variable annuity. The “mortality risk” of each Account is shared among those who receive income from it and is not guaranteed by either CREF or TIAA. See prospectus for additional information.
10 No strategy can eliminate or anticipate all market risks, and losses can occur.
TIAA Disclosures
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.
Annuity account options are available through contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity and may lose value.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161 or go to www.TIAA.org/prospectuses for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.
TIAA Traditional is a fixed annuity issued by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: 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.
TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributes securities products. Advisory services are provided by Advice & Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a registered investment adviser. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations.
Annuity contracts may contain terms for keeping them in force. For full details, including costs, call TIAA at 1-800-842-2252
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Whether You Aced It Or Scored Low,
These Are Some Actions You Can Take To Build Income You Cannot Outlive
