Common misunderstanding- TIAA lifetime annuity is very clear about being an “insurance product”. Hence under the state umbrella protections.The TIAA income annuity payout still is preferable, but there is one difference: the commercial SPIA is insured by the state guarantee pool in the state of residence of the annuitant. A TIAA group retirement plan does not have that backing.A life-only annuity for a 63 year old female (that’s what I assume you are) With a $60,000 single premium would pay $355 per month per immediateannuities.com. That’s $4260 per year.I have an old "zombie" account (about 30 years old) with TIAA that has about $60k in TIAA Traditional. I was looking at closing it out now that I'm retired and comparing the 10 year payout and a single lifetime annuity. I don't need the income I just wanted to tidy things up, but the payout on the single life annuity starting at age 63 (ie in 2024 for me) is 9.45% - I get a 2% bonus. I would normally have taken the 10 year payout ($7700 /year) and just invested the money in a general account, but the 9.45% for life looks like a good bet. What would you do?
Meanwhile, 9.45% times $60,000 is $5,670 per year.
So if you want to start a monthly income, and if I’ve interpreted your situation correctly, the TIAA option is far preferable to the commercial SPIA.
Statistics: Posted by Scubadude — Sat Jan 27, 2024 9:13 am — Replies 13 — Views 2189