TIAA unveils ‘policy roadmap’ to boost retirement readiness

When it comes to retirement readiness, most Americans are not ready at all. According to LIMRA’s 2025 Retirement Investors Study, which surveyed those aged 45-75 with at least $100,000 in investible assets, 35% of investors do not believe their assets will last until they are 90.

Many financial professionals recommend having at least $1 million saved for retirement. Yet, according to 2025 data from the Federal Reserve's Survey of Consumer Finances, only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.

That is why TIAA put together a comprehensive Policy Roadmap, which is designed to help employers, workers, and policymakers take concrete actions to help ensure more American workers can achieve financially secure retirements.

Working toward better retirement outcomes

According to Chris Spence, TIAA’s head of government relations and public policy, increasing retirement security involves a public/private partnership.

“Today, approximately 59 million Americans do not have access to a workplace retirement plan. Over the last 40 years, there has been a decline in the number of people who have access to a defined contribution plan,” he says.

Spence explains that the roadmap is part of TIAA’s advocacy efforts to outline what employers, workers and policymakers can do to help increase retirement security. “We’re hoping to make retirement plans an accumulation vehicle to be turned into a lifetime income investment,” he says.

He notes that they’re also looking at greater adoption of lifetime income within 401(k) plans. “Over the last five years, $100 billions of lifetime income has been included in retirement plans through annuities,” he says.

The roadmap outlines specific actions people can do, including:

Employers can:

• Establish auto-enrollment for new employees to encourage participation
• Set default employee contribution rates at 6% with annual auto-increases
• Provide default investments with guaranteed returns and income
• Promote comprehensive lifetime income education on how savings convert to retirement income, including guaranteed lifetime income options

Workers can:

• Participate actively in workplace plans and save at least enough to meet the employer match, if offered
• Make use of education and advice tools
• Take advantage of age-based catch-up contributions

Policymakers can:

• Encourage re-enrollment of workers who chose not to participate
• Create a federal auto-IRA and expand state-sponsored plans where applicable
• Require minimum default contribution rates of 6% for plans with annual auto-increases
• Help plan sponsors offer a menu of distribution options, including guaranteed income options
• Allow 403(b) plans to offer the same investments as 401(k) plans

Spence says the roadmap is also a good tool that financial professionals can use to help educate clients and businesses they work with.

The retirement readiness roadmap complements and builds upon TIAA's Retirement Bill of Rights, which establishes four fundamental principles:

1. That every worker has the right to save for and achieve a financially secure retirement;
2. Access to low-cost investment options that provide adequate income;
3. Clear information to make informed choices; and
4. Support from public and private sectors working together to ensure lifetime income for retirees.

Spence says there is more to be done when it comes to retirement readiness. “Recent retirement legislation has given more Americans access to workplace plans. While people can open an IRA on their own, it requires more work and planning. We do a lot to get people enrolled in retirement plans, but not as much on how to distribute the money in retirement in a way that will last. We want to put the “I” back in ERISA (Employee Retirement Income Security Act),” he says.

This is important as LIMRA’s 2025 Retirement Investors Study reveals that only 42% of pre-retirees expect to receive enough income from Social Security, traditional defined benefit pension plans, and/or lifetime-guaranteed annuities to cover their households’ basic living expenses so that they do not need to use their savings to pay these expenses.

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