Employees Have Sought Lifetime Income in Retirement Plans

A TIAA survey revealed that most U.S. workers fear outliving their savings and struggle with rising living costs.

Updated on Oct. 1, 2026 in Retirement Planning

Gouache-painted editorial illustration of an hourglass and a brass gear, evoking the steady passage of time and retirement financial security. — A majority of U.S. workers are urging employers to add lifetime income streams to retirement plans as inflation and healthcare costs threaten long-term financial stability. AI Illustration. Upload story photo >

Live Poll

Do you believe employers have a responsibility to offer retirement plans that provide guaranteed lifetime income?

Recent data shows that over half of U.S. adults worry about depleting their finances before death. Workers are increasingly calling for employers to incorporate lifetime income options into workplace retirement plans to mitigate longevity risks.

Why it matters

Traditional retirement strategies are increasingly viewed as insufficient due to longer life expectancies and economic pressures. Employees fear they may become a financial burden on their families, driving a demand for more secure, structured income streams.

Retail annuity sales hit a record $464.1 billion in 2025. TIAA projects that its own lifetime income solutions will reach $100 billion in assets and one million participants by 2027.

The players

TIAA

This financial services organization provides retirement planning and investment solutions to academic, research, medical, and cultural institutions.

The details

Workers identified rising healthcare costs and general inflation as the primary threats to their financial future, with 80% citing cost-of-living concerns. In response, firms are now embedding lifetime income options into default investment tiers to help staff maintain assets within employer plans.

July 27-31, 2026: The survey period for the TIAA Retirement in the Age of AI and GLP-1s report.
2025: Retail annuity sales reached a record high of $464.1 billion.
October 2026: The data was released during National Retirement Security Month.
End of 2026: TIAA expects to serve 1,000 institutions with customized solutions.
2027: Lifetime income assets are projected to reach $100 billion.

Market Dynamics

The move toward embedded lifetime income marks a departure from the standard defined-contribution retirement model that has dominated the U.S. labor market for decades. This shift reflects a broader effort to mitigate the risks formerly carried exclusively by defined-benefit pensions.

If your employer adds lifetime income options to your 401(k), you may soon have the ability to lock in guaranteed payouts that protect against the risk of outliving your balance. Review your current plan documentation to see if your institution is among those transitioning to these new, structured default options.

The takeaway

Workers should proactively assess if their current retirement contributions account for rising healthcare costs and potential longevity risks. Implementing a strategy that includes guaranteed income sources can provide a critical safety net against unexpected inflation and market volatility.