What You Need to Know
- The TIAA Traditional annuity provides a guaranteed growth rate along with an additional amount.
- The 2022 guaranteed minimum interest payment total is $5 billion.
- The TIAA board has discretion over how much, if any, it will add to the guaranteed amount in a given year.
TIAA said today that it will add $2.3 billion to the total amount of interest payments flowing to holders of the TIAA Traditional fixed annuity this year.
The New York-based life insurer had already promised to pay holders of the annuity $5 billion in interest.
The new announcement brings the total expected payout to about $73 billion, and it will increase the rates typical retirement savers get by an average of 21%, TIAA said.
The TIAA Traditional annuity offers a guaranteed minimum crediting rate along with the opportunity to get an additional amount over the guaranteed rate.
The TIAA board has discretion over how much, if any, it will add to the guaranteed amount in a given year.