Who lives longer, men or women?
The answer has long been known; women are in first place in the longevity test. Statistically, they live longer by 6.5 years.
“The dirty secret is that women need more for retirement because they live longer, and yet they earn less.” Cindy Hounsell, president of the Women’s Institute for a Secure Retirement.
In a 2019 survey asking Baby Boomer-aged women about their retirement plans and their investible assets, single women had substantially less money saved for retirement than single men. In addition to less money saved for retirement, a high percentage (86%) of women surveyed planned to retire earlier than men.
The other essential fact discovered from the study results was that women had a much greater fear of running out of money during their retirement years. While 52% of men are concerned about retirement shortfalls, 70% of women list this as their number one concern.
According to the Women’s Institute for a Secure Retirement
Top Five Retirement Challenges For Women
- Three out of five working women earn less than $30,000 per year.
- Three out of four working women earn less than $40,000 per year.
- Half of all women work in traditionally female, relatively low-paid jobs without pensions.
- Women retirees receive only half the average pension benefits that men receive.
- Women’s earnings average $.77 for every $1 earned by men – a lifetime loss of over $300,000.
Women are more likely to work part-time jobs that don’t qualify for a retirement or savings plan. In addition, working women are more likely than men to interrupt their careers to take care of family members.
Women work fewer years and contribute less toward their retirement, resulting in lower lifetime savings. On average, a female retiring at age 65 can expect to live another 21 years, nearly 3 years longer than a man the same age. Savings can increase a woman’s chances of having enough money to last during her retirement. Normally, women invest more conservatively than men. Carefully choose where you put your money and learn how to improve your investment returns. Realities can put retirement in jeopardy and makes planning a difficult task. The Institute says that women are twice as likely as older men to face financial issues.
The critical first step for women with their financial planning is to take control and be in charge of their financial future. Making sure your financial future has fundamental guarantees is the first step. Annuities can help provide that strong base. Here are a few benefits of using an annuity as the foundation of retirement planning.
Funds in an annuity accumulate as deferred. Annuities may avoid probate when a named beneficiary is used. Many annuities now contain a death benefit provision, which allows for a more substantial inheritance to be received by the designated beneficiary.
Many annuities now contain long-term care riders, which will assist in nursing home expenses. The LTC rider can less expensive than a long-term care insurance policy. In addition, the right type of annuity (fixed) allows for protection from loss (and risk), and the proceeds are fully guaranteed.
Unlike an IRA or 401(k), annuities have no limits in regards to annual contributions. And finally, women statistically live longer than men, and annuities have an income feature that will provide an income for as long as the annuitant lives, regardless of how long that may be. Thus, a woman can provide the foundational structure of long-term guaranteed income without any concern of outliving her money.
Safety, guaranteed income, annuities could be the key for women who want an insured retirement income.