Sam G.
I thought retiring would be a…
I thought retiring would be a relatively simple procedure with TIAA payouts for life. The associate assigned to me was very nice, available and tried to be helpful but I think the fault lies with TIAA itself. Most retirement accounts, you name a beneficiary and if you pass away the beneficiary receives your payouts. With TIAA you are charged for a specific length of time that a beneficiary may receive your benefits if you pass away. I chose 20 years meaning that if I die within 20 years after receiving benefits my spouse will continue to receive my payouts but not after the 20 year period expires. I was charged for this "service". On another note, it was nearly impossible to pin down exactly how much my monthly payouts for life would amount to. I was finally given a ballpark figure but the contract I was sent had a much lower figure. I was told that I would receive the agreed upon amount (even though there is no legal document to back that up) and would only receive the substantially lower amount in the contract under very rare circumstances that have only happened 3 times in the past 90 years. The lack of a formal legal document stating how much I will actually receive monthly is frightening. The lower amount in the actual contract is all they are legally bound to pay and can default to that amount for any reason they choose. I also have to add that the application process to access my own money for retirement was byzantine, confusing and not entirely up front. They have all the hallmarks of a shady business. I hope my monthly payouts remain constant and I regret having to forfeit some of my hard earned money so that my wife will be guaranteed to receive my pension for a period of time. I could have chosen the option for her to receive my payouts for an unlimited period of time but this was too costly for me to consider. Again, my primary contact at TIAA was mostly helpful, available and responsive but it is TIAA's policies that are suspect. Another contact never answered my numerous emails. If I could do it over again I'd choose a different retirement financial management company.



