Fidelity vs. TIAA: How to Choose the Right Plan for Your Retirement
- Heather Asteriou
- May 6
- 2 min read

Choosing between Fidelity and TIAA for your University retirement plan is a crucial decision. Both providers have unique strengths, and selecting the right one depends on your individual retirement goals and personal preferences. Let's simplify your decision-making process.Â
Key Differences to UnderstandÂ
Here are three important factors to consider when choosing between Fidelity and TIAA:Â
1. Investment Flexibility vs. StabilityÂ
Fidelity: Offers mutual funds and index funds, providing greater flexibility and direct control over your investment choices. Ideal if you prefer actively managing your portfolio with granular investment options or diversified index investing.Â
TIAA: Known for annuity products offering predictable, stable returns and guaranteed lifetime income. Ideal if you value certainty and secure, guaranteed payouts in retirement, or simple,
broad investment options.Â
2. Costs and FeesÂ
Fees can significantly impact your retirement savings over time:Â
Fidelity: Typically offers low fees, particularly through low-cost index funds. This can mean substantial savings over the long term. Do keep in mind that Fidelity’s wide range of choices includes some actively managed funds that carry higher fees, so you still need to check each fund’s expense ratio and not assume every Fidelity option is the cheapest.Â
TIAA: Slightly higher fees with their annuity products, justified by additional security features and guaranteed income streams. They provide mutual funds too, including index funds and target-date funds, and many of these have very competitive low fees. Â
3. Retirement Income NeedsÂ
How you prefer to receive retirement income can help determine your choice:Â
Fidelity: Offers flexible withdrawal options suitable for those who want control over their retirement spending. Withdrawals can be set up systematically.Â
TIAA: Offers structured, guaranteed lifetime income, appealing if you seek predictable monthly payments during retirement. Additionally, you can customize your income needs with systematic withdrawals.Â
Gain Complete Confidence—Free!Â
Still unsure? Our free masterclass, "Fidelity vs. TIAA: Master Your University Retirement Plan," available at Learning with Provizr, offers clear, expert-led video lessons to help you choose confidently.Â
Take control today and secure the retirement future you deserve.Â
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