Vanguard and TIAA Launch Lifetime Income Option for Retirement Plans

Vanguard and TIAA, two prominent firms in the U.S. retirement industry, have announced a collaboration to introduce the Target Retirement Lifetime Income Trusts, a new target-date collective investment trust (CIT) series featuring the TIAA Secure Income Account as an annuity option guaranteeing lifetime income. This initiative seeks to address the demand for predictable, guaranteed income streams in retirement, enhancing Vanguard’s existing target-date solutions with an annuity-backed income feature. The product targets employer-sponsored retirement plans, combining Vanguard’s investment expertise with TIAA’s century-long reputation for stable annuity offerings supported by strong insurance ratings. This collaboration underscores a shared commitment to providing scalable and secure retirement income solutions for American workers, responding to evolving workforce needs. Further updates on the product's design and availability are expected throughout 2026, marking a significant development in the retirement plan market. This strategy aligns with growing industry trends emphasizing lifetime income options within defined contribution plans to improve retirement income security and reduce longevity risk for retirees.