Impact of TIAA Traditional on Retirement Outcomes

This technical report presents an update to research conducted by the TIAA Institute and Charles River Associates, focusing on the effects of incorporating TIAA Traditional into qualified default target-date glidepaths. The study examines whether replacing a portion of fixed income bond allocations with TIAA Traditional can enhance retirement outcomes. The 2025 update builds on the original 2024 study by extending the analysis with additional data from 2022 to 2024, particularly during a period marked by significant interest rate fluctuations. Findings indicate that TIAA Traditional improved retirement outcomes in 93% of scenarios analyzed, with an average residual balance increase of $78,327, equating to a 16% rise from previous results. The report details how TIAA Traditional provides higher account balances at retirement, consistent positive returns, and greater estate values, thereby enhancing retirement security and reducing interest rate risks compared to traditional bond portfolios. The implications for retirement plan design are discussed, emphasizing the potential benefits of integrating guaranteed income solutions.