Retirement saving is a uniquely individual journey. Although many Americans may have similar financial goals, people often approach their saving journey differently, depending on factors such as age, income and gender.
When it comes to the retirement plan that’s right for you, it won’t be a one-size-fits-all solution. With varying personal factors along with unpredictable external factors, such as current market volatility, it is important to educate yourself on all the options available and have a plan in place to help set yourself up for a secure retirement.
Unique Challenges and Retirement Planning Stressors
While saving enough for retirement can be challenging for anyone, it can be even more difficult for women. According to the Centers for Disease Control, since 2022, American men can expect to live an average of 74.8 years, while for American women, the average life expectancy is 80.2 years. Furthermore, according to the Social Security Administration, women who reach the age of 65 on average can expect to live past 86.
On top of having a longer life expectancy, women may require more time away from work compared to men in order to care for children or elderly parents (sometimes simultaneously as part of the Sandwich Generation). Women also may have higher health care costs while still facing the wage gap battle. All these factors are important to consider when putting together the retirement plan that works for you.
While these roadblocks may feel overwhelming to many, understanding and preparing for them in advance can help you mitigate their risk and determine how you can align your savings strategies to best meet your goals. Since, on average, women are living longer than men, it is essential for you to be engaged in retirement planning and ensure you are on track, if not ahead, to achieve your retirement goals.
Annuities As a Universal Savings Option
As you prepare for retirement and begin accounting for personal factors, it is important to consider all savings strategies. One attractive option is an annuity. An annuity provides insurance against the risk of outliving your money after you stop working and comes in various forms to help meet different needs.
For example, annuities can be used to help women manage the risk of outliving their money. Fixed and fixed indexed annuities in particular are insurance products designed to shelter you from market downturns and help you achieve the retirement plan that sets you up for a secure financial future.
A 2023 survey from Athene found that in total, 42% of women rely on Social Security or cash savings as their biggest source of retirement income. If you are looking to expand upon and diversify your savings, annuities may be the perfect option.
Annuities can be beneficial for not only women, but anyone planning for retirement. By helping protect from major financial risks like stock market losses and serving as a source of guaranteed income, annuities can be used to help launch men and women into a financially secure future.
Utilize Financial Professionals to Build the Retirement Plan You Need
The myriad options available to retirees along with an ever-changing economic climate make it challenging to know what may be best for your financial situation. In fact, Athene’s 2023 survey asked individuals if they knew what an annuity was and found that almost one-fourth (24%) of women didn’t. Working with a financial professional can help educate you and give you confidence that you are making appropriate decisions for your retirement journey.
With so many obstacles to navigate, having an expert in your corner who can help build solutions, develop the retirement plan that’s comprehensive and can help turn your dreams into reality.
The Bottom Line
While everyone faces unique challenges when building financial security and planning for retirement, you don’t have to let those obstacles stand in your way, especially as a woman. Take proactive steps to help educate yourself on products, be more involved in your finances and form your team of financial advocates to help you feel more empowered to make the important decisions necessary to successfully shape your path to a secure retirement.
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