Transamerica Partners with Nuveen and TIAA to Offer Integrated Lifetime Income Target-Date Funds
Transamerica, Nuveen, and TIAA have formed a strategic partnership to offer an integrated retirement solution combining Nuveen's target-date funds (TDFs) with TIAA's lifetime income product. Transamerica will provide the Nuveen Lifecycle Income Index CIT Series as a default option for its retirement plan recordkeeping clients. This product offers a blend of investment strategies designed to reduce portfolio volatility while maintaining liquidity and portability, packaged in a target-date fund format.
The solution incorporates the TIAA Secure Income Account (SIA), which provides guaranteed lifetime income to defined contribution plan participants. This structure aims to provide plan sponsors with a cost-effective way to include lifetime income options in their retirement plans, addressing a growing interest among workers for predictable retirement income streams.
The collaboration leverages Nuveen's investment innovation, TIAA's strong insurance and annuity capabilities, and Transamerica's retirement plan administration expertise. It responds to an industry trend where plan sponsors are increasingly focusing on lifetime income solutions to enhance the security and appeal of retirement plans.
The NLI CIT Series and the TIAA SIA are expected to be available later in the year, facilitating simplified plan administration and improving the competitive positioning of plans. This initiative reflects ongoing innovation in defined contribution plan offerings, particularly by embedding guaranteed income components directly within target-date funds.
Separately, industry discussions highlight that while cost remains a consideration for plan sponsors, prioritization of managing costs has decreased slightly, reflecting a broader shift toward optimizing retirement outcomes beyond mere expense reduction. Additionally, regulatory scrutiny continues regarding fiduciary responsibilities, including how plan information disclosures might impact fiduciary risk for plan administrators.