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TIAA Group Supplemental Retirement Annuity

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  • TIAA Group Supplemental Retirement Annuity

    I have access to the TIAA Group Supplemental Retirement Annuity in several tax protected retirement accounts. A TIAA representative described this as:

    1. Not really an annuity
    2. An account with guaranteed at least 3% return and completely liquid, can transfer to other investment or take distributions in any way I see fit.

    Am I understanding it correctly? Anyone have experience in this investment? Any reason to not put a portion of my fixed income/bond asset allocation into this investment?


  • #2
    Millions of teachers have used TIAA/CREF. Their annuity feature functionally provides an annuity based pension, and it has a number of options you can choose depending on your situation. Our work dropped them some years ago over performance, fee, and customer service issues, but there is nothing intrinsically wrong with the product. But it is basically a variable annuity. I suspect you would do better with a three fund portfolio to accumulate wealth, then buy a SPIA, but it is neither incorrect nor a bad play to use TIAA for a portion of your retirement portfolio. How Does the TIAA Traditional Annuity Work? | TIAA

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    • #3
      Sorry for not clarifying better in my original post. I can buy TIAA GSRA as an investment option in my 403b and 457 accounts, in addition to other index funds, mutual funds, etc. I do have a basic 3 fund portfolio, but am considering replacing a portion of the bond component with this option. Wanted to see if any wise and/or old forum members had arguments for or against this move...

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      • #4
        My wife's had this in her 401a/403b/457b and we've used it as approximately 50% of her bond allocation. However, her employer got a new contract with TIAA, and the interest rate decreased, she couldn't take out the funds, and had to withdraw over 10 years. As long as #2 holds true for you, I think it's a reasonable option to use as part of your bond allocation.

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        • #5
          Had it from residency 403b. Moved it into new work's 401k bc while guaranteed- mine was 3%, and yes i kept it as part of my bond portfolio- I wanted to consolidate my retirement accounts. If you do go ahead with it, I'd consider it a part of bonds- a safe return with minimal risk/reward (except run away inflation risk).

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