Accumulation rates are unchanged but some annuity payout rates have gone down.
INCOME PAYOUT RATES FOR LIFETIME ANNUITIES ISSUED DURING SEPTEMBER 2020VINTAGE(WHEN MONEY WAS CONTRIBUTED) LIFETIME INCOME PAYOUT RATESINGLE LIFE WITH 10-YEAR GUARANTEE LIFETIME INCOME PAYOUT RATEJOINT LIFE WITH 20-YEAR GUARANTEE
|2019 - 2020||5.6%||4.8%|
|2016 - 2018||5.7%||4.9%|
|2012 - 2015||5.7%||4.9%|
|2002 - 2011||6.2%||5.4%|
An income payout rate represents the amount of annual income you will receive as a percentage of the amount you convert to lifetime annuity payments.
The examples shown above are based on a 65-year-old choosing a single life annuity with a 10-year guarantee period or a joint life annuity (with full benefit to survivor) with a 20-year guarantee period. Income payout rates for each participant will vary by age, the annuity partner’s age (for joint options) and the income option selected. Note that participants who contribute to TIAA Traditional over the long term may receive higher income amounts, since they would get the rates applicable to the older vintages as shown above.
Figures shown above are based on the TIAA Traditional Standard Payment Method.
Hardly surprising that payouts have gone down.
I know you know this, Yogi.
My university is now hustling charitable gift annuities to donors (like me). The payouts suck--even with the tax deduction.