The latest data from the U.S. Administration on Aging shows that in the 85-and-over age group alone, there are 226 women for every 100 men. Although everyone knows women outlive men, few people understand the financial implications of this phenomenon for retired women.

While it’s true that anyone can benefit from owning an annuity, there are several significant reasons for women to own them. Take a look at these statistics provided by the American Council of Life Insurers in “A Woman’s Guide to Annuities”:

- Women's earnings average $0.76 for every dollar earned by men--a lifetime loss of over $300,000.

- Women are more likely to take time away from the workforce to care for children or aging parents. In fact, they spend on average 32 years in the workforce compared to the 44 years spent by men.

- Only eighteen percent of women ages 65 or older were receiving their own pension benefits in 2000--either as a retired worker or survivor--compared to 31 percent of men.

Besides lower earnings and lower retirement income, women are faced with even more challenges when they retire. Because women live five to seven years longer than men, married women are more likely to become widowed. Few women really understand how much of a negative impact this has on their financial stability during retirement. According to the Center for Retirement Research at Boston College, married women who depend on their husband’s retirement benefits find that their income plummets after their husband's death. Their Social Security benefits are cut and income from their husband’s pension is either reduced or terminated. An annuity is a good way for a married woman to ensure a predictable income stream in the event she becomes widowed.

In addition, the American Council of Life Insurers stresses certain annuity features that are vital to women who have only themselves to depend on for their retirement income:

- Taxes on annuity earnings are deferred until payout.

- If you choose an equity-indexed annuity, a variation of the fixed annuity, your account accumulates at a minimum fixed rate of return and may earn additional interest based on the performance of an equity index.

- Unlike IRAs and 401(k)s, no tax code restrictions limit the amount of money you can put into an non-qualified annuity.

- Annuities are more flexible than other retirement savings products. Unlike IRAs and 401(k)s, you are not forced to start payouts at age 70 ½.

- You choose how you receive payouts when you retire-including a secure and steady stream of income you cannot outlive.

Call us today to find out how an annuity can help you maintain your financial independence if you remain alone.

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