Women and Retirement Planning

Decision making is the process of creating choices by identifying a judgement, gathering information, and assessing alternative resolutions. While processing retirement planning, women are often overlooked as a resource and in many cases, as the decision maker. That assumption has steadily been challenged. Women and retirement planning is alive and well.

The reasons are obvious. The data is conclusive. Woman are “decision makers”. As Financial advisers, we should be including them in all discussions, and addressing the single adult households where there is a woman at the helm. The practical and analytical side of retirement planning is what makes Women and Retirement Planning such a perfect match. Let’s look at the facts.

70 Million U.S. women participate in the workforce.

The U.S. life expectancy of the American woman is 81 years. Alternatively, the U.S. life expectancy of the American man is 76 years.

In the U.S. alone, approximately 33% of working married women earn more money than their spouse.

Women make up the sole heads of 32% of U.S. households.

More women are inheriting wealth because of longevity and demographic patterns.

(U.S. Census Bureau)

So what does that mean to woman investors?
Women often face more challenges in investing and financial planning. It’s important to acknowledge these issues, and explore them with the affected family and a trusted financial professional. Determining the right solutions based upon an individual’s financial situation is critical to developing a long-term strategy, and developing a comfortable and secure retirement.

While every woman and every family is different, research shows that it is the American woman that faces many challenges.
Help address these issues by strategizing and adding the right products for women in retirement.

Women who are Married to Men are More Likely to Outlive their Husbands
Based on current studies regarding life expectancy, on average women outlive men. Assuming the fact that there is often an age gap in these couples, this increases in significance. Without planning, families are often devastated financially when a spouse is lost. This transition can add to an already stressful situation, and lead to costly errors.

The best protection is to ensure that both spouses are involved in managing family finances and in making financial decisions. Today however, many women are not as involved in their financial planning as they should be. This needs to change.

Women tend to be conservative in their planning decisions.
Women are more conservative when it comes to planning options than men. Taking a more conservative approach is not necessarily incorrect, depending upon your stage in life. As we get older, taking a more cautious plan of action is prudent when it comes to longevity planning. Looking for guarantees, purchasing long-term care insurance, and minimizing high risk portfolio choices by using fixed annuities, can help secure a retirement plan.

How do people view annuities?
According to LIMRA, about 68% of men interviewed agreed with the statement: “I will be able to live the retirement lifestyle I want,” whether or not they owned an annuity.

When the institute issued the statement, “My savings and investments won’t run out if I live to be 90 years old” to the same men, owing an annuity increased the likelihood that the men would say “yes” to 74%, from 68%.

For the female survey participants, owning an annuity had a much bigger effect on those two confidence indicators. Owning an annuity increased women’s confidence in their ability to “live the lifestyle I want” to 71%, from 56%.

So, for women worried about not having enough to maintain their pre-retirement lifestyles, adding annuities to their retirement plan can be a great way to give security. Annuities can provide guaranteed income for the rest of your life, while reducing the need to manage retirement accounts on an ongoing basis.

ANNUITES: Why they are the right choice

  • No need to actively manage your retirement.
    • By 2020, women in the United States will control $22 trillion in wealth, (Bank of Montreal Wealth Institute). Many women don’t feel comfortable managing their own investments. If your client doesn’t have the knowledge or the time to manage investments, annuities can simplify the process.
  • The ability to guarantee for life.
    • Something many people don’t understand about longevity is that the older you are today, the longer you’re likely to live. This makes having firm knowledge that you won’t outlive your savings a tough hurdle to cross. Because annuities can be structured to offer monthly payments that last for life, they can help fill your income gap and provide a peace of mind.

The information is conclusive. The time to look at this retirement market is now. In 40% of households today, women are the primary breadwinner. Women need to be involved in financial retirement decisions. Because of their conservative views and openness to insurance products such as life insurance, annuities and long-term care, women are the decision makers you need to reach.

Here at Pinnacle Financial Services we have the tools to assist our partner agents in these products. Whether fixed annuities for guarantee income or long-term care options to protect the retirement nest egg, our team can help.

Questions or concerns?

Contact a Pinnacle Representative today by calling 1 (800) 772-6881 x6003 or by emailing lifesales@pfsinsurance.com.


Angela Palo

November 27, 2019

Angela Palo
Angela Palo
Executive VP


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