[brewer12345]

A couple of thoughts:

- TIAA is a mutual and you account is participating. That means that you share in the gains and losses along the way with all the other annuity holders. The offset is that the conservative nature of the company and the way it is run mean that changes tend to be smoothed out overtime. So it is quite possible that TIAA's annuity payouts are based on falling/low interest rates for a year or two past when market rates turn up. So if you choose to take interest only it may be for a few years before things turn around. OTOH, you will find no more safe company to do business with (credit risk-wise), so whatever games you play they will not invole an element of credit risk.

- The question facing you is a little broader, I think. Regardless of which option you choose, you will be exposed to very significant risk if we enter a bout of high inflation, because even the graduated payments would not keep up. So regardless of the payout you choose, what other mitigants to inflation do you have? Own your own home? Plan to continue working for some time? Eligible for SS? Were I in your shoes, I would try to assemble an investment portfolio outside of TIAA that was entirely focussed on stuff that would produce outsized returns in times of high inflation, especially commodities, commodity producers, etc.