When TIAA launched an IRA product broadening access to its proprietary annuity products on March 10, the stock market recorded one of its most volatile days in years. Investors were fretting over the impact of tariffs and the possibility of a recession.
The day's roller coaster ride reinforced what TIAA president and CEO Thasunda Brown Duckett already believed about the value of lifetime income annuities.
"Guaranteed income isn't a luxury, it's a necessity," Duckett said, arguing that people want security they can count on regardless of market swings. "That's why we're committed to expanding access to guaranteed lifetime income solutions, in both the institutional and retail markets."
The IRA product followed TIAA's expansion into the corporate 401(k) market in 2022. The nonprofit, which manages assets of about $1.4 trillion, traditionally offered fixed-income products through 403(b) plans, which are mostly offered to nonprofit and university employees.
The expansion aligns with Duckett's focus on improving people's retirement security, which she sees evolving into a national imperative. "When you consider that 45% of Americans risk running out of money in retirement, it's clear why this is becoming a priority," she said.
Senators Bill Cassidy (R-La.) and Tim Kaine (D-Va.), for example, are backing legislation that would re-enroll people in retirement plans every three years, bringing back savers who may have dropped out during difficult economic times. Nearly 20 states, meanwhile, have introduced legislation creating state-backed retirement savings programs for workers who lack access to work-based plans.
"These innovations show how public policy can expand access to retirement savings opportunities for all Americans," Duckett said.
The private sector also is playing a role, as evidenced by TIAA's investment in Vestwell.
Founded in 2016, the fintech aims to broaden access to savings programs through work-based plans. TIAA's investment arm, TIAA Ventures took part in the company's Series D round, which raised $125 million in 2023. TIAA is now partnering with Vestwell to add a lifetime income product to the startup's platform this year.
TIAA also is expanding access through partnerships with major recordkeepers like Empower, Transamerica and Principal.
Internally, Duckett has focused on sharpening the skills of TIAA's 16,000 employees.
In November 2022, the nonprofit launched a training effort called the Guild Network to boost staff skills in technology and business processes. More than 3,500 employees signed up, "demonstrating a real hunger for learning and growth," Duckett said. "That intellectual curiosity and willingness to evolve is crucial as we modernize our organization."
TIAA, which manages about $1.4 trillion in assets, launched a proprietary generative AI platform in July 2024. The platform, TIAA GAIT, is designed to help employees provide faster, more insightful answers to client questions. The organization's asset management teams, meanwhile, are using AI to analyze research in an effort to make better-informed investment decisions.
"I'm seeing thousands of employees embrace AI skills and capabilities, showing me that our people are ready to lead in this AI-powered future," Duckett said. "Because ultimately, AI isn't just about technology – it's about combining human insight with digital capabilities to better serve our clients."
Duckett, a former student athlete, recently added to her own investments as part of a group buying a minority stake in WNBA franchise the New York Liberty. The group included Alibaba Group founder Jack Ma, investment strategist Karen Finerman, supermodel Karlie Kloss and Gabrielle Rubenstein, co-founder and managing partner of private equity firm Manna Tree. Proceeds from the investment are helping to fund the team's new practice facility in Brooklyn.
"As someone who grew up playing sports, I know firsthand that athletics build more than just champions - they build leaders," she said. "This investment isn't just about basketball - it's about creating opportunities and inspiring the next generation."
Her philanthropic work plays out through the Otis and Rosie Brown Foundation, which is named after Duckett's parents. Its mission is to highlight extraordinary people who use ordinary resources to enhance the well-being of individuals, families and communities. The foundation also oversees a social campaign called Extraordinary Is to connect families in North Texas with resources designed to foster academic engagement, boost college enrollment rates and help students stay in college.
"Through our foundation work, we're celebrating everyday excellence by supporting people who understand that we all have a responsibility to create opportunities for others," she said.
