TIAA CEO Pushes Annuities for 401(k)s as SECURE 2.0 Raised RMD Age to 73
Updated
Updated · Fortune · May 30
TIAA CEO Pushes Annuities for 401(k)s as SECURE 2.0 Raised RMD Age to 73
1 articles · Updated · Fortune · May 30
Thasunda Brown Duckett is pressing to reshape U.S. retirement planning around guaranteed lifetime income, arguing workers should focus less on a lump sum at 65 and more on monthly checks that do not run out.
401(k)s replaced many traditional pensions starting in the 1980s, shifting retirement risk onto individuals and leaving even long-term savers exposed to market swings and withdrawal uncertainty.
Duckett says annuities can solve part of that gap by converting a portion of savings into predictable lifelong payments, a model central to TIAA’s business.
Congress already eased that path through the 2019 SECURE Act and its 2022 expansion, which mandated auto-enrollment for newer 401(k) plans, made annuities easier to offer and lifted required minimum distributions to age 73.
Duckett is also urging broader annuity options in workplace plans, tax credits for small employers to start 401(k)s, state auto-IRA programs and continued protection of Social Security.
Can private annuities truly solve America's retirement crisis, or will they fall short without a major expansion of Social Security?
Are default 401(k) annuities a safe retirement floor or a trap of high fees and lost flexibility for uninformed savers?
Guaranteed Income in 401(k)s: The Impact of Annuity-Embedded Target-Date Funds and Regulatory Change
Overview
The retirement savings landscape is changing as Vanguard and TIAA introduce annuity-embedded target-date funds (TDFs) into 401(k) plans. This marks Vanguard’s first new target-date series since 2003 and reflects a new focus on integrating guaranteed lifetime income solutions. These funds help participants convert their savings into predictable income streams, directly addressing retirees’ worries about outliving their savings, high healthcare costs, and market downturns. By embedding annuities in TDFs, the industry aims to make retirement income more secure and accessible, signaling a major shift in how Americans plan for financial stability in retirement.