Secure a Retirement like Baseball’s Bobby Bonilla

Nearly twenty-four years after the former third baseman played his final Major League Baseball game, Bobby Bonilla’s big-league paycheck continues to score. 

When the New York Mets cut the aging Bonilla in 1999, the organization owed him $5.9 million—and bought out the remainder of his contract. Instead of paying Bonilla the lump sum up front, however, then-Mets owner Fred Wilpon struck a deal with Bonilla’s agency. 

Now, every July 1, the Mets cut Bonilla a healthy $1.2 million check. The parties agreed to a 10-year payout pause and eight percent compound interest, with annual installments due 2011-2035. Bonilla turned a $5.9 million buyout into what is essentially a $30 million fixed annuity. 

“Every July 1st, that check hits. It’s peace of mind knowing that no matter what, that’s locked in. July 1st is guaranteed income, steady, simple, and secure. Doesn’t suck,” Bonilla said in a video interview with TIAA and Nuveen. 

What lies beneath Bonilla’s story is more than luck—it is financial strategy, negotiation and a long-term vision that was far ahead of its time. TIAA and Nuveen use Bobby Bonilla Day as a reminder of smart planning, financial literacy and the value of guaranteed income. 

“What Bobby Bonilla secured through an iconic contract, we’re now working to make available to everyday Americans through their workplace retirement plans,” said Brendan McCarthy, TIAA’s head of retirement investing, in a statement. “The demand for predictable, guaranteed income that can’t be outlived is universal.” 

McCarthy points to SECURE 2.0 as a “watershed moment for retirement security in America.” He said it provides the regulatory framework to bring guaranteed lifetime income solutions directly to workers through their 401(k) plans. 

To reap the rewards of SECURE 2.0, Nuveen recommends employees check whether their employers offer access to lifetime income products. A TIAA and Nuveen survey shows 93% of 401(k) participants think it is important for their retirement plan to provide options for converting monthly savings into guaranteed monthly retirement income that never runs out. In turn, employers are increasingly incorporating annuities into their plans. 

“Annuities offered by your employer typically offer a trifecta of benefits: lower costs, absence of lockup periods, and freedom from sales commissions—advantages rarely found in retail markets,” McCarthy said. 

McCarthy said if in-plan annuities are unavailable, employees can purchase simple and low-cost alternatives through a reputable provider. For example, TIAA is one example of a firm that offers a solution to the 55 million Americans who do not have access to a retirement plan in the workplace. 

“Through the TIAA IRA, Americans have the option for pension-like retirement checks that can help provide certainty they will have money to spend for the rest of their life,” said Colbert Narcisse, TIAA’s chief product and business development officer, in a statement. The individualized retirement account allows all working Americans access to TIAA’s annuities. 

“Bobby Bonilla’s deal demonstrates the wisdom of thinking beyond lump sums to create lasting security,” Narcisse said. “His story perfectly captures what TIAA has been advocating throughout our history—reliability matters more than potential windfalls when planning for a lifetime of financial needs.”