Core Insights - Vanguard is introducing a new retirement savings option in collaboration with TIAA, aimed at simplifying income generation from retirement accounts for participants in its 401(k) plans starting next year [1][2]. Group 1: Product Overview - The new offering is an investment product modeled on target-date funds, which includes an embedded annuity, allowing participants to annuitize a portion of their portfolio at retirement without dealing with complex annuities or commissions [2][4]. - Participants will be enrolled in a Target Retirement Lifetime Income Trust, which operates like a typical target-date fund, based on an expected retirement age of 65 [5][6]. Group 2: Investment Strategy - The investment strategy involves selecting a mutual fund based on the desired retirement year, with the fund manager adjusting the investment mix between stocks and bonds as the target date approaches [6]. - At age 55, a portion of fixed-income savings will be shifted to a TIAA secure income account, reaching 25% of the account by age 65, with the option to convert this portion into a guaranteed paycheck [7]. Group 3: Flexibility and Options - Similar to other defined-contribution plans, participants can leave their funds in the plan, roll them over to an IRA, or cash out if they change jobs or are laid off [8].