Collective Investment Trust Features
Allocation to the TIAA Secure Income Account
Annuity
NEW
YORK, Aug. 8, 2023 /PRNewswire/ -- Nuveen, the
investment manager of TIAA, introduced the Nuveen Lifecycle Income
Series, a target date solution for defined contribution plans that
offers plan participants guaranteed savings growth during their
working years and the ability to set aside a portion of savings for
guaranteed monthly payments that last for life in retirement.
An extension of the Nuveen Lifecycle target date fund platform,
the new series – structured as collective investment trusts
available only to qualified retirement plans – embed the TIAA
Secure Income Account (SIA), a deferred fixed annuity within a
familiar target date fund (TDF) series. The series include three
TDF strategies: Nuveen Lifecycle Income Index (all passive
investments), Nuveen Lifecycle Income Blend (a blend of active and
passive investments) and Nuveen Lifecycle Income Active (all active
investments).
The trustee for the new CITs is SEI Trust Company, a leading
provider of collective investment trusts to the U.S. retirement
market and the ultimate fiduciary authority over the management of
and investments made in the CIT, with Nuveen serving as
advisor.
Combining Nuveen's nearly two decades of providing target date
solutions with TIAA's 105 years of helping create secure
retirements, the Nuveen Lifecycle Income CITs include the
competitive benefit of providing an in-plan lifetime income
solution that allocates to guaranteed income throughout
participants' "glidepaths," potentially lowering overall portfolio
volatility during their careers and throughout their
retirements.
Participants automatically build up optional lifetime income
payments through their contributing years. And the longer they are
invested the greater their opportunity for additional guaranteed
lifetime income in retirement thanks to SIA's "loyalty bonus"
profit-sharing feature. Payments in retirement can also increase
over time, helping to mitigate the effects of inflation.
Nuveen currently manages approximately $85 billion in target date
assets1.
"TIAA and Nuveen are uniquely positioned to advance the
evolution of defined contribution into a comprehensive retirement
planning approach that can support both investment growth and
guaranteed income generation," said Mike
Perry, Head of the Global Client Group and Global Product at
Nuveen. "We believe retirement income that never runs out will give
people confidence that they've taken control of their financial
futures, and we are strongly committed to the mission of creating
secure, satisfying retirements for even more Americans."
Guarantee for both savings and income
The TIAA SIA allocation within the CIT is protected from losing
value and grows no matter what the market does. At retirement, a
participant can, but is not required, choose to turn some or all
their savings in the TDF into a monthly "paycheck" for
life.2
"The reality is that too many of us are unprepared for
retirement, with retirement insecurity affecting our families,
friends and neighbors and threatening the very sustainability and
vitality of our economy," said Colbert Narcisse, Chief Product and
Business Development Officer at TIAA. "The Nuveen Lifecycle Income
Series with TIAA's solution inside address one of today's most
critical retirement planning challenges: the increasing need for
guaranteed, predictable lifetime income, especially as more
Americans approach retirement and are living longer."
Lifetime income gap
In recent decades, lifetime income has largely disappeared from
corporate retirement plans, as private sector employers have
shifted away from providing traditional defined benefit pension
plans in favor of defined contribution plans such as the 401(k).
According to the Department of Labor's Employee Benefit Security
Administration, only 12% of retirement plan participants have a DB
pension today, down from 70% in 1975.3
Because DC plans were originally conceived as pure savings
vehicles, they generally have not had income-generating features.
Americans currently are facing a projected $4 trillion retirement income gap; the Employee
Benefits Research Institute has estimated that 40% of U.S.
households will run short of money in retirement.4
The passage of the 2019 Setting Every Community Up for
Retirement (SECURE) Act paved a path for corporate retirement plans
to include guaranteed life income annuities. That in turn created
new opportunities for plans and the advisors who serve them.
"We're making it easier for plan consultants to provide improved
retirement outcomes, because they can now deploy lifetime income in
a simple, affordable target date fund structure that they and their
clients are familiar and comfortable with," said Perry. "Nuveen and
our parent TIAA believe that every worker in America has the right
to save for and achieve a financially secure retirement, with
access to low-cost investment options that help provide ample
income for a dignified retirement."
Media Contact
E-Soo Kim
| (M) 551-224-4919 | E-Soo.Kim@nuveen.com
About Nuveen
Nuveen, the investment manager of
TIAA, offers a comprehensive range of outcome-focused investment
solutions designed to secure the long-term financial goals of
institutional and individual investors. Nuveen has $1.1 trillion in assets under management as of
30 Jun 2023 and operations in 27
countries. Its investment specialists offer deep expertise across a
comprehensive range of traditional and alternative investments
through a wide array of vehicles and customized strategies. For
more information, please visit www.nuveen.com.
About TIAA
TIAA is a leading provider of secure
retirements and outcome-focused investment solutions to millions of
people and thousands of institutions. It is the #1
not-for-profit retirement market provider, paid more than
$5.6 billion in lifetime income to
retired clients in 2022 and has $1.3
trillion in assets under management (as of
6/30/2023). www.tiaa.org
About SEI Trust Company
SEI Trust Company serves as the Trustee of the Nuveen/SEI Trust
Company Investment Trust III and maintains ultimate fiduciary
authority over the management of, and the investments made, in the
Nuveen Lifecycle Income Index CIT Series (Lifecycle CIT
Series).
Each fund is part of the trust operated by the trustee. The
trustee is a trust company organized under the laws of the
Commonwealth of Pennsylvania and
wholly owned subsidiary of SEI Investments Company (SEI). The
Lifecycle CIT Series is managed by the trustee, based on the
investment advice of Nuveen Fund Advisors, LLC, the investment
adviser to the trust, and Nuveen Asset Management, LLC as
investment sub-adviser to the Lifecycle CIT Series.
The Lifecycle CIT Series are trusts for the collective
investment of assets of participating tax qualified pension and
profit-sharing plans and related trusts, governmental plans and
other eligible plans, as more fully described in the
Declaration of Trust. As a bank collective investment trust, the
trust is exempt from registration as an investment company. A plan
fiduciary should consider the funds' objectives, risks, and
expenses before investing. This and other information can be found
in the Declaration of Trust and the Funds' Disclosure
Memorandum.
About SEI
SEI (NASDAQ: SEIC) delivers technology and
investment solutions that connect the financial services
industry. With capabilities across investment processing,
operations, and asset management, SEI works with corporations,
financial institutions and professionals, and ultra-high-net-worth
families to solve problems, manage change and help protect
assets—for growth today and in the future. As of March 31, 2023, SEI manages, advises, or
administers approximately $1.3
trillion in assets. For more information, visit
seic.com.
The fund is not a mutual fund, and its units are not registered
under the Securities Act of 1933, as amended, or the applicable
securities laws of any state or other jurisdiction.
There are risks with investing, including possible loss of
principal.
Annuity contracts may contain terms for keeping them in force.
We can provide you with costs and complete details.
TIAA Secure Income Account is a fixed annuity product issued
through this contract by Teachers Insurance and Annuity Association
of America (TIAA), 730 Third Avenue, New
York, NY, 10017: Form series including but not limited to:
TIAA-UQDIA-002-K and related state specific versions. Not all
contracts are available in all states or currently issued. Any
guarantees under annuities issued by TIAA are subject to TIAA's
claims-paying ability.
1 As of June 30,
2023
2 Annuity benefits are provided directly by TIAA and not
by Nuveen or SEI Trust Company.
3 Employee Benefit Security Administration, Department
of Labor (October 2022)
4 Employee Benefit Research Institute (March 7, 2019)
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SOURCE Nuveen