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INTRODUCING

Vanguard

Target Retirement

Lifetime Income Trust

Built-in option for guaranteed income offers another path to financial freedom.
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Expanding the Target Retirement lineup

Hear from Dan Reyes, global head of Vanguard’s Portfolio Review Department, on our disciplined approach to innovation and how this new solution brings together target-date evolution and retirement income for another option to achieve the best chance of retirement success.

Retirement income is top of mind for most participants

  86 %
of participants want their employers to offer retirement income.*
As participants increasingly look to their employers for retirement income solutions, Vanguard is committed to helping participants and plan sponsors alike navigate what’s possible. Vanguard Target Retirement Lifetime Income Trusts reflect this commitment, offering maximum flexibility and personalized support from two trusted firms.

Trusted experts

A strong decumulation solution begins with a strong accumulation solution. That's why our industry-leading target-date strategies form the foundation of Vanguard Target Retirement Lifetime Income Trusts, with a guaranteed-income option through TIAA.

Proven structure . . .

The Trusts follow the same time-tested approach as Vanguard’s Target Retirement series—broad diversification, low costs, and a “through retirement” glide path—while gradually adding an income-funding strategy as an on-ramp to optional lifetime income. This new series is part of Vanguard’s holistic retirement income framework that includes investment strategies, financial wellness and guidance, advice, and access to guaranteed income.

. . . from industry leaders

The product combines the strengths of two trusted industry experts: Vanguard, with our industry-leading target-date structure, and TIAA, a highly rated leader with more than 100 years as an annuity provider.†

Maximum flexibility

The Trusts are designed to work with your existing plan structure, offering a highly diversified QDIA that supports saving and spending phases without added complexity for participants who don’t want to annuitize.

Allocation begins gradually

Beginning in the years leading up to retirement, the Trusts start allocating part of the portfolio to the TIAA Secure Income Account (SIA), a deferred fixed annuity held within the Trusts designed to fund guaranteed retirement income. The SIA caps at about 25% of the portfolio by its target retirement date, leaving the majority of the portfolio in market assets for growth.

Participants choose when and how much

At retirement (or at almost any point during later retirement years), a participant can elect to annuitize some or all of their SIA holdings to start a guaranteed lifetime check. Any portion not annuitized stays invested, and participants can make withdrawals just as with any other Target Retirement investment. In addition, participants may accumulate a TIAA Loyalty Bonus® over the time they invest in the SIA, which may result in higher annuity payout rates compared with purchasing an annuity immediately before beginning withdrawals.

A glide path built for balance

The glide path’s final asset mix, featuring a 40% equity allocation, continues to offer growth potential for those who annuitize without adding undue risk for those who choose not to.

Personalized support

Participants will receive personalized support through each stage of their journey, with guidance and education to help meet their unique needs.

Support designed for decision confidence

The participant experience is critical. We know that education, engagement, and ease of use are essential to adoption. And because decisions around guaranteed income can be complex, our personalized participant experience provides valuable information, tools, and resources related to the Trusts through a variety of channels designed to help participants decide whether guaranteed income is best for their financial well-being.

Online tools and human assistance offer clarity 

The online experience for participants delivers straightforward education and guidance to support effective planning and informed decisions about annuitization. Participants have access to dedicated TIAA lifetime income consultants for personalized, one-on-one assistance. The human consultants can provide answers about lifetime income benefits, payment options and information on getting started, personalized retirement income illustrations, and discussions at or near retirement.

Plan sponsors and participants can feel confident knowing that we’re here for them. Our personalized participant experience delivers the right mix of simplicity and support.

Lifetime income—built into a familiar TDF structure

Related links

Vanguard’s retirement income solutions

Vanguard provides a full spectrum of retirement income solutions designed to strengthen defined contribution plans with personalized options to give participants the best chance for retirement success.

This comprehensive approach supports diverse needs with integrated investment strategies, financial wellness, personalized advice, and access to guaranteed income. Vanguard Target Retirement Lifetime Income Trusts complement our time-tested approach, providing flexibility to help participants smoothly transition from saving to spending in retirement.

See our approach

*2024 In-Plan Insights Program. Greenwald Research, 2024.

† For its stability, claims-paying ability and overall financial strength, Teachers Insurance and Annuity Association of America (TIAA) is a member of one of only three insurance groups in the United States to currently hold the highest rating available to U.S. insurers from all four leading insurance company rating agencies: A.M. Best (A++ rating affirmed as of July 23, 2025 ), Fitch (AAA rating affirmed as of August 5, 2025), Standard & Poor’s (AA+ rating affirmed as of August 27, 2025), and Moody’s Investors Service (Aa1 rating affirmed as of May 21, 2025). There is no guarantee that current ratings will be maintained. 

Disclosures

For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest.

Diversification does not ensure a profit or protect against a loss.

There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

Investments in target-date funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in target-date funds is not guaranteed at any time, including on or after the target date.

The TIAA Secure Income Account is a fixed annuity product issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY. Form series including but not limited to: TIAA-STDFA-001-NUV and related state specific versions. Any guarantees under annuities issued by TIAA are subject to TIAA’s claims-paying ability.

Lifetime income payments from TIAA Secure Income Account may include a TIAA Loyalty Bonus® which is discretionary and determined annually.

Converting some or all of your savings to income benefits (referred to as "annuitization") is a permanent decision. Once income benefit payments have begun, you are unable to change to another option.

The Vanguard collective trusts are not mutual funds. They are collective trusts available only to tax-qualified plans and their eligible participants. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc. Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing.

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