Since women tend to live longer than men but also work fewer hours outside of the home in their lifetime, they are at a greater risk for running out of money in retirement. Annuities are an excellent insurance product that can help women receive a guaranteed monthly income stream throughout their retirement. Christi Roberts of Annuity News Journal points out that most people do not have a traditional pension to carry them through retirement in her article “Women Find Retirement Stability In Annuities.” Annuities offer women the option of having an investment that is similar to having a personal pension. Since insurance companies usually soak up the risk involved in annuities in return for some of the return earned, investors really have nothing to lose.
There are many kinds of annuities for women and men to choose from, including deferred, immediate, variable, and fixed. 401k annuities roll all or a portion of the 401k savings built up over a career and invest that money in an annuity to pay over your lifetime. Investors have the option to protect themselves against inflation, receive payments for a specified period of time, for their lifetime, or for their spouse’s lifetime. There are many different riders associated with annuities to make them suit your individual needs. The costs and benefits will differ based on the insurance company issuing the product. Whether women have a 401k savings to rollover or would like to use personal savings to protect their retirement, annuities can help protect them against outliving their money.