TIAA CEO Highlights Retirement Savings Crisis
Nearly half of Americans are falling short in their retirement savings, and TIAA Retirement Solutions CEO Corny Gibson emphasizes the urgency of addressing this issue. “Forty-five percent of Americans don’t have enough saved for retirement, so sitting there every day making a presentation about something or just looking at each other without any real progress is a waste of time,” Gibson remarked in a conversation with CNBC’s Julia Boorstin on the podcast “CNBC Change Makers and Power Players.”
To tackle this, Gibson aims to streamline the administrative processes at TIAA, a company with over a century-old mission of ensuring retirement security for Americans. The need for speed is critical; she pointed out, “Because the clock is ticking, right?”
A recent report revealed that two-thirds of Americans now view the traditional goal of retiring by age 65 to 70 as an unrealistic expectation, and many anticipate working for as long as they can physically manage. This sentiment, shared by many, reflects growing concerns about financial security in later years.
Gibson acknowledges the challenges people face in today’s economy. She noted that younger generations, particularly Millennials and Gen Z, just want assurances for their future. “It helps create safety and alleviates any burden on people,” she explained.
The gap in retirement savings spans across various demographics, including age, income, race, and political affiliations. With people living longer and traditional pension plans becoming less common, reliance on Social Security alone has never been sufficient for retirees.
“At TIAA, we’re discussing what guaranteed lifetime income entails as part of every pension plan, whether it’s through us or not,” Gibson mentioned. Reflecting on her decision to join TIAA, she recalled, “When Sasanda Brown Duckett said, ‘We have to ensure this company lasts another 100 years,’ I thought, ‘Sign me up!’”
Gibson and Brown Duckett have both been recognized consecutively on CNBC’s Changemakers list.
Gibson is particularly motivated by the challenge of helping young Americans set up retirement savings that will sustain them long-term. She encourages consistent contributions, especially if an employer provides matching funds. “Don’t leave that money on the table,” she advised.
She believes in harnessing innovative ideas from all levels within the organization, often seeking input from younger employees to maintain a forward-thinking mindset. “Some days you’ll run out of your office and grab someone to see what they’re hearing or learning,” she said. “Later, I’ll ask them what they took away from it.”
Joining TIAA after a 20-year career at Loop Capital, where she worked under her cousin Jim Reynolds, has shaped her perspective. This entrepreneurial background fosters a willingness to challenge the status quo. “We need to ask ourselves—Is there a better way to do things? How can we act more quickly while avoiding bureaucracy?” Gibson posed.
This mindset fuels her ambition to enhance the retirement experience for more Americans. “It’s a problem for all of us, and it can be solved if we collaborate, put aside our differences, and focus on solutions,” she concluded.
For insights on these topics, listen to the “CNBC Changemakers and Power Players” podcast.
CNBC is currently accepting nominations for their unranked “CNBC Changemakers: Women transforming business” list, which celebrates women who are making an impact in the business world and shaping the future.
