Growth follows the launch of the lifetime income-embedded
Nuveen Lifecycle Income funds
NEW
YORK, May 2, 2024 /PRNewswire/ -- Assets
in TIAA and Nuveen's suite of lifetime income target-date solutions
across corporate, educational, governmental, and healthcare
retirement plans are now approaching $35
billion in AUM, far surpassing assets in any other
comparable lifetime income products in the market. TIAA has a broad
suite of lifetime income-embedded target-date solutions to meet
institutional clients' needs, including TIAA RetirePlus, the
TIAA Secure Income Account (SIA) and the Nuveen
Lifecycle Income CIT Series (NLI). TIAA is the leader in
lifetime income whose mission it is to provide a more secure
retirement to millions more Americans with the assurance of a
retirement paychecki that lasts for life.
Beginning in March 2024, NLI – a
target date collective investment fund solution for defined
contribution plans with embedded lifetime income through SIA – was
activated for 19 plan sponsors who chose to map investments from
their prior default solutions. NLI was launched in
August 2023 and this funding
represents a robust start to the joint efforts of Nuveen and TIAA
to expand access to lifetime income solutions across the defined
contribution retirement market.
"Going live with these new and market-disrupting products
represents a significant milestone for our organization and is the
result of TIAA's strong history of leading in lifetime income,"
said Colbert Narcisse, chief product officer for TIAA. "As we have
demonstrated with the rapidly accelerating demand for TIAA
RetirePlus, TIAA is uniquely positioned to help solve America's
retirement crisis. These inaugural wins for NLI, coupled with
TIAA's recently announced distribution agreement with Empower,
position the firm for significant growth."
"We partner with many of the nation's top retirement plan
advisors and consultants who see the need for lifetime income in
401(k) plans," said Brendan
McCarthy, head of Nuveen Retirement Investing. "They
recognize NLI as an easy solution for employers to provide their
employees with the option of a guaranteed paycheck for life through
the familiar structure of a target date fund."
A 2023 TIAA Institute survey found most U.S. adults have
poor longevity literacy and that the negative impact of outliving
income is much larger than the negative impact of over saving.
"We're facing a very real retirement crisis in our country,"
said Kourtney Gibson, chief
institutional client officer for TIAA. "As demand for lifetime
income grows, clients are increasingly partnering with us because
they want to work with a company who has TIAA's financial strength,
track record of stability, mission-based ownership structure that
allows us to return profits to people who hold our annuities, and
because they trust our deep annuity expertise."
Since 1918, TIAA has offered guaranteed solutions that
deliver tangible benefits to retirement savers and has paid out
more than $585 billion in retirement
benefits to millions of people. It is one of only three U.S.
insurers to hold the highest possible ratings from three of four
leading rating agenciesii.
Today, TIAA is delivering retirement security to even more
Americans. Through innovative lifetime income products, smarter
default solutions, and personalized advice, more people from all
walks of life can access guaranteed, lifelong monthly income to
help them live full and dignified retirements.
- TIAA RetirePlus can be a qualified default investment
alternative (QDIA) for the 403(b) and nonprofit market. It combines
the ease of a familiar target-date structure with the ability to
select investments from the existing plan while potentially
lowering administrating costs and fees. RetirePlus allows
participants to convert some or all their savings into a retirement
paycheck when TIAA Traditional is built into the plan.
- The TIAA Secure Income Account is a fixed annuity like
the TIAA Traditional annuity but specifically designed to be used
as an allocation within managed accounts or custom target-date
portfolio strategies.
- The TIAA Secure Income Account is also able to be embedded
within the Nuveen Lifecycle Income CIT Series, a collective
investment trust (CIT) target-date solution that offers
participants the option of converting a portion of their holdings
into guaranteed income at retirement. The trustee of the CIT is SEI
Trust Company.
About TIAA
TIAA is a leading provider of secure retirements and
outcome-focused investment solutions to millions of people and
thousands of institutions. It is the #1 not-for-profit retirement
market provideriii, paid more than $5.6 billion in lifetime income to retired
clients in 2022 and has $1.28
trillion in assets under management (as of
12/31/2023)iv.
About Nuveen
Nuveen, the investment manager of TIAA, offers a comprehensive
range of outcome-focused investment solutions designed to secure
the long-term financial goals of institutional and individual
investors. Nuveen has $1.1 trillion
in assets under management as of 30 Jun
2023 and operations in 27 countries. Its investment
specialists offer deep expertise across a comprehensive range of
traditional and alternative investments through a wide array of
vehicles and customized strategies. For more information, please
visit www.nuveen.com
Learn more about TIAA
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About Nuveen Lifecycle Income CIT Series
SEI Trust Company serves as the Trustee of the Nuveen/SEI
Trust Company Investment Trust III and maintains ultimate fiduciary
authority over the management of, and the investments made, in the
Nuveen Lifecycle Income CIT Series (Lifecycle CIT Series).
Each fund is part of a trust operated by the trustee. The
trustee is a trust company organized under the laws of the
Commonwealth of Pennsylvania and
wholly owned subsidiary of SEI Investments Company (SEI). The
Lifecycle CIT Series is managed by the trustee, based on the
investment advice of Nuveen Fund Advisors, LLC, the investment
adviser to the trust, and Nuveen Asset Management, LLC as
investment sub-adviser to the Lifecycle CIT Series.
The Lifecycle CIT Series are trusts for the collective
investment of assets of participating tax qualified pension and
profit-sharing plans and related trusts, governmental plans and
other eligible plans, as more fully described in the Declaration of
Trust. As a bank collective investment trust, the trust is exempt
from registration as an investment company. A plan fiduciary should
consider the funds' objectives, risks, and expenses before
investing. This and other information can be found in the
Declaration of Trust and the Funds' Disclosure Memorandum.
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TIAA Secure Income Account is a fixed annuity product issued
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TIAA-UQDIA-002-K and related state specific versions. Not all
contracts are available in all states or currently issued.
i Retirement paycheck refers to the annuity
income received in retirement. Guarantees of fixed monthly
payments are only associated with TIAA's fixed annuities.
ii For its stability, claims-paying ability and
overall financial strength, Teachers Insurance and Annuity
Association of America (TIAA) is a member of one of only three
insurance groups in the United
States to currently hold the highest rating available to
U.S. insurers from three of the four leading insurance company
rating agencies: A.M. Best (A++ as of 7/23), Fitch (AAA as of 8/23)
and Standard & Poor's (AA+ as of 9/23), and the second highest
possible rating from Moody's Investors Service (Aa1 as of 9/23).
There is no guarantee that current ratings will be maintained. The
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or any other product or service not fully backed by TIAA's
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iii As of July 21,
2022. Based on data in PLANSPONSOR's 403(b) 2022 DC
Recordkeeping Survey, combined 457 and 403(b) data.
iv As of December 31,
2023, assets under management across Nuveen's investment
specialists and TIAA investment management teams are $1.28 trillion.
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SOURCE TIAA