Trusted expertise for confidence in your QDIA
A strong decumulation solution starts with a strong accumulation foundation. That’s why the Target Retirement Lifetime Income Trusts build on the same time-tested approach as our existing Target Retirement series, emphasizing broad diversification, low costs, and purposeful, investor-focused design.
Then, leveraging TIAA’s expertise in annuities, the Target Retirement Lifetime Income Trusts introduce a gradual on-ramp to optional lifetime income. The result is a solution that combines Vanguard’s strength and expertise as an investment manager with TIAA’s experience as a highly rated annuity provider.2
Simplicity in a complex category
Balancing outcomes for annuitizers and non-annuitizers
Not all participants will choose guaranteed income. The Target Retirement Lifetime Income Trusts are designed to support strong outcomes for all participants—regardless of whether they ultimately decide to annuitize.
During accumulation, the TIAA fixed annuity shares stable value’s core objective: capital preservation with guaranteed daily growth. It is designed to deliver rates comparable to core bond yields, with guarantees backed by TIAA’s financial strength. As a result, the fixed annuity supports strong accumulation outcomes for every participant—including those who never elect guaranteed income in retirement.
In retirement, the Target Retirement Lifetime Income Trusts maintain a relatively higher equity landing point of 40%. This design is intended to pursue higher expected value for participants who elect guaranteed income, compared with a more conservative allocation, while limiting the trade-off in market exposure for participants who do not annuitize.
Flexibility, so participants always remain in control
Strong retirement outcomes start with the QDIA
The Target Retirement Lifetime Income Trusts represent a differentiated new QDIA option with built-in guaranteed income—designed around trust, simplicity, balance, and flexibility. But product design alone isn’t enough. Delivering the best possible retirement outcomes requires a robust participant experience that engages, educates, and guides decision-making and financial behavior over time.
Contact your Vanguard client team or get in touch using the button below to start exploring how Vanguard Target Retirement Lifetime Income Trusts can help meet your plan’s QDIA needs.
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Notes
1 TDF assets are based on data from Vanguard, Morningstar, and company public filings, as of December 31, 2025.
2 For stability, claims-paying ability and overall financial strength, Teachers Insurance and Annuity Association of America (TIAA) is one of only three insurers in the United States to currently hold the highest possible rating available to U.S. insurers from all four leading insurance company rating agencies: A.M. Best (A++ rating affirmed as of July 25, 2025 ), Fitch (AAA rating affirmed as of February 13, 2026), Standard & Poor’s (AA+ rating affirmed as of August 27, 2025), and Moody’s Investors Service (Aa1 rating affirmed as of February 12, 2026). There is no guarantee that current ratings will be maintained. The financial strength ratings represent a company’s ability to meet policyholders’ obligations and do not apply to variable annuities or any other product or service not fully backed by TIAA’s claims-paying ability. The ratings also do not apply to the safety or the performance of the variable accounts or investment products, which will fluctuate in value.
Disclosures
For more information about any fund, visit workplace.vanguard.com or call 866-499-8473 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.
Investments in Target Retirement Funds and Trusts are subject to the risks of their underlying funds. The year in the fund or trust name refers to the approximate year (the target date) when an investor in the fund or trust would retire and leave the workforce. The fund/trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The Income Trust/Fund and Income and Growth Trust have fixed investment allocations and are designed for investors who are already retired. An investment in a Target Retirement Fund or Trust is not guaranteed at any time, including on or after the target date.
Vanguard is responsible only for selecting the underlying funds and periodically rebalancing the holdings of target-date investments. The asset allocations Vanguard has selected for the Target Retirement Funds are based on our investment experience and are geared to the average investor. Investors should regularly check the asset mix of the options they choose to ensure it is appropriate for their current situation.
Vanguard collective trusts are not mutual funds. They are collective trusts available only to tax-qualified plans and their eligible participants. Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc.
All investing is subject to risk, including the possible loss of the money you invest. 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. Diversification does not ensure a profit or protect against a loss.
Any guarantees under annuities issued by TIAA are subject to TIAA's claims-paying ability.
The TIAA Secure Income Account is a group annuity contract issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY. TIAA Secure Income Account interest and income benefits include guaranteed amounts plus additional amounts as may be established on a year-by-year basis by the TIAA Board of Trustees. The additional amounts, when declared, remain in effect through the “declaration year,” which begins each March 1 for accumulating annuities and January 1 for payout annuities. Any guarantees under annuities issued by TIAA are subject to TIAA’s claims-paying ability. The TIAA Secure Income Account is a guaranteed insurance contract and not an investment for federal securities law purposes. Past performance is no guarantee of future performance. Form series including but not limited to: TIAA-UQDIA-002-K, TIAA-STDFA-001-NUV and related state-specific versions. Not all contracts are available in all states or currently issued.
Converting some or all of their savings to income benefits (referred to as "annuitization”) is a permanent decision. Once income benefit payments have begun, the investor is unable to change to another option.
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