Vanguard and TIAA Launch Lifetime Income Trusts Embedding Fixed Annuity

Vanguard and TIAA have introduced the Target Retirement Lifetime Income Trusts, a new target-date collective investment trust (CIT) that incorporates the TIAA Secure Income Account, a fixed annuity launched by TIAA in January 2022. This product aims to address the growing demand for guaranteed lifetime income among retirement plan participants and sponsors, reflecting a significant shift in retirement income solutions. The trusts are expected to be available in the latter half of 2026, providing a new option for lifetime income embedded directly within retirement savings vehicles used by millions of Americans. This product is part of an industry trend responding to the disappearance of traditional pensions and the need for income security beyond Social Security benefits. Market data shows strong growth in target-date fund assets, with the total reaching $4.37 trillion in the first half of 2025, and TIAA's lifetime income target-date products managing over $60 billion in assets.