TIAA Traditional Annuities See Record Inflows Amid Market Volatility

Investor preference for safer investment options has driven a surge in inflows to TIAA Traditional, the flagship annuity from Teachers Insurance and Annuity Association of America, reaching a five-year high in March amid market volatility. Early April data indicates continued strong demand, with inflows projected to surpass March 2020 records. A historical study by TIAA found that TIAA Traditional annuities outperformed standard target-date funds 63% of the time, providing greater income efficiency and asset retention for retirees.

In March, TIAA expanded access to its proprietary lifetime income annuities, including TIAA Traditional, by offering them to all Americans via the TIAA IRA platform. The company reported paying over $5.9 billion in lifetime income to retired clients in 2024 and managing $1.4 trillion in assets as of year-end 2024, underscoring the product's role in retirement income strategies amid fluctuating markets.