TIAA Announces New Names for Variable Annuity Accounts
Updated Names Better Reflect Investment Strategies; Provides Greater Clarity for Clients
NEW YORK — TIAA recently shared exciting updates regarding its flagship CREF Variable Annuity suite, which manages a substantial $290 billion. Three of its variable annuity accounts will receive name changes effective November 30, in 2025. This initiative aims to offer greater clarity for clients and better align the accounts' names with well-recognized investment terminology.
The accounts undergoing renaming are:
Account Name Updates
CREF Stock Account will transform into CREF Total Global Stock Account. This change highlights that the actively managed account invests in equities across companies of all sizes within both the United States and abroad.
CREF Equity Index Account will be updated to CREF S&P 500 Index Account, clearly linking it with the S&P 500 Index, which it tracks.
CREF Social Choice Account will become CREF Responsible Balanced Account, clarifying its focus on environmental, social, and governance (ESG) factors while balancing equity and fixed income investments.
Despite these new names, the accounts' investment management and strategies will not change, ensuring that fees and expenses remain consistent.
Colbert Narcisse, TIAA’s Chief Product & Business Development Officer, remarked, "These updates reflect our ongoing commitment to transparency, aiding our clients in making informed decisions about their investments. By clarifying how each account operates, we empower institutional clients and participants to craft portfolios that align better with their long-term retirement objectives."
Clients with investments in these accounts will begin noticing the updates on their statements following the effective date and in their online profiles.
TIAA's Pioneering Role in Variable Annuities
As a pioneer in the realm of variable annuities since 1952, TIAA has helped savers benefit from long-term market growth while combating inflation. Participants have the option to save throughout their work years, with the potential to receive guaranteed lifetime income during retirement.
TIAA stands out among insurers by offering this secure lifetime income alternative, addressing the rising costs faced during retirement. Its variable annuities facilitate significant growth potential and stability, allowing clients to tailor their retirement income strategies effectively.
A Closer Look at TIAA's CREF Accounts
- Built for Growth: TIAA’s variable annuities are known for their strong returns compared to benchmarks, providing long-term growth opportunities.
- Cost Efficiency: With expense ratios among the lowest in the industry, the CREF variable annuity accounts are managed at cost, ensuring affordability for clients.
- Lifetime Income Opportunities: Unlike conventional mutual funds, TIAA and CREF variable annuities provide guaranteed income options, allowing for growth and protection against inflation in retirement.
The Unique Income Test Drive Feature: TIAA offers flexibility through its exclusive Income Test Drive feature. This allows participants to experience receiving income from their annuities for up to two years before committing long-term. Clients can adjust their investments during this trial period, an option few competitors provide.
Many participants find success in blending fixed (TIAA Traditional) and variable (CREF) annuities with other investment types, such as mutual funds. This diversified approach to income ensures a balance between stability and potential growth, catering to varying economic situations.
TIAA’s variable annuities encompass products like CREF variable annuities, TIAA Real Estate accounts, and TIAA Access, each contributing to dynamic growth and sustainable income strategies.
For more insights regarding TIAA's variable annuities and the forthcoming name changes, please visit TIAA's website.
About TIAA
TIAA provides secure income and outcome-focused investment solutions tailored to millions of individuals and thousands of institutions. In the past year, it distributed over $5.9 billion in lifetime income to retired clients, managing a total of $1.48 trillion in assets as of September 30.
Frequently Asked Questions
What are the new names of TIAA's variable annuity accounts?
The CREF Stock Account will become the CREF Total Global Stock Account, CREF Equity Index Account will change to CREF S&P 500 Index Account, and CREF Social Choice Account will be renamed CREF Responsible Balanced Account.
Why is TIAA changing the names of these accounts?
The name changes aim to enhance clarity regarding investment strategies and align with recognized industry terminology, making it easier for clients to select appropriate accounts.
Will the investment strategies or fees change with the new names?
No, TIAA confirmed that the investment strategies, management, fees, and expenses will remain unchanged despite the renaming of the accounts.
What is the Income Test Drive feature?
This feature allows participants to receive income payments from their TIAA variable annuity for a trial period of up to two years before committing, offering greater flexibility and decision-making power.
How does TIAA support its clients in retirement planning?
TIAA assists clients by providing a range of annuity options with guaranteed income, growth potential, and resources to help build a diversified retirement income strategy tailored to individual needs.
