Vanguard and TIAA Launch Lifetime Income Trusts for Retirement Security

Vanguard and TIAA have introduced the Target Retirement Lifetime Income Trusts, a target-date collective investment trust series incorporating the TIAA Secure Income Account, a fixed annuity launched in January 2022. This initiative reflects the industry's response to the increasing demand for retirement solutions that offer guaranteed lifetime income, addressing the retirement income gap left by the decline of traditional pensions. The trusts are set to be available in the second half of 2026, aiming to provide lifetime income options within familiar retirement savings vehicles for millions of Americans. The growing market for target-date products is evident as U.S. mutual fund and CIT target-date assets rose 10% in the first half of 2025 to $4.37 trillion, while TIAA's lifetime income target-date products have surpassed $60 billion in assets under management, highlighting significant investor interest in guaranteed income solutions.