The CEOs profiled in IRI’s The Long View series helm complex, large-scale businesses. Yet, the personal nature of leadership rises to the surface in every conversation. This pattern is perfectly exemplified by Thasunda Brown Duckett, who leads TIAA as President and CEO. Thasunda harnesses the power of the organization’s global mission by making it personal. This includes expanding into the 401(k) corporate market with lifetime income solutions, educating consumers about the Golden Rules of Investing, and driving legislative changes all for the purpose of addressing the retirement security anxieties felt by millions of individual Americans.
Read on to learn more about the strategies underway at TIAA to address consumer need and attract the next generation workforce as well as the lessons that Thasunda learned in her first job that still influence her thinking today.
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What is one key initiative or change that you’re most proud to see come to fruition in the past few years?
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One of the initiatives I’ve been most proud of since taking on the CEO role is the ways we’ve been expanding lifetime income solutions for our clients and prospective clients. For more than 100 years, TIAA has provided retirement income to those who serve others—employees in higher education, healthcare, government, and not-for-profit industries—through access to 403(b) retirement savings plans. We’re continuing to build momentum in our core 403(b) space. But we’re also taking our learnings from serving the 403(b) space and expanding into the 401(k) corporate market with lifetime income solutions. This expansion comes at a crucial time. Americans face a $4 trillion savings gap. Serving those in the 401(k) and 403(b) markets means more Americans will have access to the tools and products they need, like annuities, to achieve a secure retirement. It is one crucial step toward closing the retirement savings gap.
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How would you characterize today’s market environment, and how should we be helping clients navigate those hurdles?
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I’d describe today’s market as dynamic. We’ve been living in a high inflationary environment that has created significant challenges to Americans’ financial security and is likely to have long-term effects on household finances. We know that due to the high inflation experience in 2022, one-quarter of employed adults decreased their retirement saving because of inflation’s impact on their finances. As households and the market continue to recover, it’s important to take a long-term view of finances and retirement savings.
At the end of the day, money is emotional. We understand that inflation is showing up in people’s everyday lives and in the decisions they’re having to make to afford everyday necessities. We’re telling our individual retirement clients that, no matter the market, they should focus on the Golden Rules of Investing: Stick to a financial plan and seek guidance if you feel uneasy, avoid market timing strategies, and ensure a portion of your portfolio is allocated to guaranteed income for retirement. The market is dynamic, but we're focused on what we can control: Staying connected to the people we serve and ensuring everyone has access to lifetime income.
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What are one or two policy advancements that you are eager to see enacted next that will help the country’s future retirees?
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I’m always encouraged by the fact that policy reforms aimed at addressing America’s $4 trillion retirement savings gap typically receive bipartisan support. Most recently, the Automatic IRA Act of 2024 shows positive momentum. The legislation establishes a federal automatic IRA system, requiring companies with more than 10 employees to provide access to retirement savings for their employees—an effective way to improve retirement outcomes. It also meets a growing demand we’ve been seeing among participants for greater access to lifetime income options, or “personal pensions.” These provide a stable income stream throughout retirement by providing individuals who reach a certain accumulation with access to lifetime income options. The Expanding Access to Retirement Savings for Caregivers Act is also crucial to helping future retirees save more—especially women, who typically take more time out of the workforce to care for family members. The act offers caregivers an opportunity to make catch-up contributions if they’ve had to leave the workforce, so they don’t miss out on those savings.
Lastly, we are excited about a proposal we are developing that would create an end-of-career equivalent of a Qualified Default Investment Alternative – we are calling it a “Qualified Payout Option.” As workers approach and transition into retirement, they would first receive information about ways to turn their savings into income and then have a choice of easy-to-implement options to receive a retirement paycheck, or annuity income, and continue managing their savings.
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In what ways is TIAA partnering with colleges and universities to attract the next generation workforce?
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TIAA is committed to attracting and retaining a talented workforce inclusive of this younger generation. In 2022 we launched the TIAA Immersion Event, where we invite top students from colleges and universities across the country to visit our Charlotte, NC campus for an immersive two-day experience. Students learn about our business and products, engage with our associates and leaders, and hear about our early career internship and rotational programs.
We’re also supporting financial education and career readiness programs across communities this year through partnerships with the Thurgood Marshall College Fund, American College of Financial Services, and National Cybersecurity Alliance. Through these alliances, we’re providing financial literacy training, education, and career readiness programs to college students across the country and introducing the world of financial services to them.
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What is one thing you learned in your first job that still helps you today?
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I was fortunate early in my career to learn firsthand about the power of information and the power of advocacy.
My father was a warehouse worker, and my mother was a teacher, so I didn’t have much exposure to corporate America growing up. It was through a program called INROADS that I gained exposure to the corporate world. But I never would have learned about that program if it hadn’t been for two individuals, Mr. and Mrs. Patterson, who first told me about it and encouraged me to participate.
Just by sharing the information about INROADS, they changed the trajectory of my life.
INROADS led me to interview for an internship with Fannie Mae. But the hiring committee wanted to go with another candidate for that position. A woman named Valerie Manning advocated that I also be hired, and ultimately launched my career in financial services. Working at Fannie Mae helped me uncover my passion for financial inclusion and solving America’s wealth gaps.
I share these stories because I still believe in the power of information and the power of advocacy. You never know whose life you can change based on what you’ve shared.
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