TIAA Institute Study Finds Partial Annuitization Increased Retirement Income by About 30%

A 2026 analysis by the TIAA Institute, as reported by Financial Advisor Magazine, found that allocating 30% of retirement savings to fixed annuities can increase annual income by nearly 30% for retirees compared to a withdrawal‑only strategy.

For a 67‑year‑old with a $1 million portfolio, shifting one‑third of assets into a fixed annuity raised annual income from approximately $40,000 under a 4% withdrawal rule to $51,867 under a blended strategy. The income increase was driven primarily by higher annuity payout rates—about 7.6% annually—combined with guaranteed, market‑independent payments that improve income predictability, particularly in the early years of retirement.

While annuity adoption remains low, interest is rising as retirees seek greater income security.

Further Reading: Tracey Longo, Fixed Annuities Boost Retiree Income By 30%, New Study Finds, Financial Advisor, April 15, 2026.