Navigating Life Transitions: Annuities as a Tool for Women on the Move

February 24, 2025

Women are expected to control $30 trillion in financial assets by 2030. That is a big number by any measure. The conundrum? They continue to face unique financial challenges during life transitions. Whether it’s a career change, divorce, or retirement, these moments often demand careful planning to maintain stability. For women seeking dependable solutions, annuities offer a reliable way to secure income and protect their financial future. In this short guide, you'll learn more about how annuities can support your long-term goals.

What Are Annuities and Their Benefits?

Annuities are financial contracts designed to provide a steady income stream, often for life. They are particularly beneficial for women due to their ability to address specific financial risks, such as outliving and depleting savings or lacking access to traditional retirement plans.

Key Benefits

• Guaranteed income: Annuities provide a predictable income stream, which reduces the risk of “living too long” and running out of money during retirement.
• Tax advantages: Contributions to qualified annuities grow tax-deferred, allowing for potentially higher savings compared to taxable accounts. Non-qualified annuities are not subject to contribution limits or required minimum distributions. They are, however, paid for with after-tax dollars. 
• Customizable options: Women can tailor annuities with features like inflation protection or terminal illness riders to meet their unique needs.

According to the U.S. Census Bureau, women earn 82 cents for every dollar a man earns and are more likely to take career breaks for caregiving. These disparities often result in lower lifetime earnings and reduced savings. Annuities help bridge this gap by offering a guaranteed income that can last a lifetime.

How Annuities Support Women in Transition

Life transitions often bring financial uncertainty. Whether you're going through career changes, recovering from divorce, or preparing for retirement, annuities for women provide stability during these periods of change.

Career Transitions

Women frequently experience career interruptions due to caregiving responsibilities or entrepreneurial pursuits. During these times, annuities can act as a financial buffer, offering a reliable income source while other savings remain intact. For instance, fixed deferred annuities allow you to contribute gradually and later convert the funds into regular payments.

Divorce and Financial Independence

Divorce often reshapes financial priorities and introduces new challenges, particularly for women, whose household income typically drops by 41%, compared to a 23% decrease for men. Annuities can serve as a consistent income stream post-divorce, which can help women rebuild their financial independence while planning for the future. 

Retirement Planning

Retirement planning is especially critical for women due to their longer lifespans and potential gaps in traditional retirement savings plans. On average, women live five years longer than men, meaning their retirement funds must stretch further. This longevity risk makes annuities an indispensable part of retirement planning.

Case Study

Linda Billings, a retired NASA writer, secured her financial future during retirement through annuities. These financial products now provide her with a reliable income stream, covering her monthly expenses and enabling her to maintain an active lifestyle. Annuities offer her peace of mind by guaranteeing lifetime payments, protecting her against the risk of outliving her savings. Her experience shows the critical role annuities play in creating dependable income during retirement.

Choosing the Right Annuity

Selecting the right annuity requires careful consideration of factors such as:

• Type of annuity: Fixed annuities provide consistent, predictable returns, making them ideal for stability. Variable and indexed annuities, on the other hand, offer potential for growth based on market performance.
• Tax implications: Qualified annuities grow tax-deferred, helping your savings accumulate faster. However, they have contribution limits and require minimum distributions after a certain age.
• Provider credibility: Choosing a trusted provider like 1891 Financial Life is essential to ensure your annuity plan meets your specific financial goals and offers long-term reliability.
• Terms and conditions: Carefully review the contract's terms, including fees, surrender charges, withdrawal penalties, and payout options.

Working with a financial advisor is essential when selecting an annuity. Advisors analyze your financial situation, retirement goals, and risk tolerance to recommend options tailored to your needs. They also clarify complex terms and conditions, ensuring you make informed decisions. 

The Role of Annuities

Annuities play an essential role in providing financial security during life's transitions. As women continue to gain control over substantial wealth, integrating annuities into your financial strategy can offer stability and peace of mind. At 1891 Financial Life, we are committed to helping you explore tailored solutions that address your individual needs. Contact us today to take the first step toward securing your financial future.

About 1891 Financial Life

Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”

At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.