Women are living longer than men. No radical news here, but women are living longer in general. Women also tend to earn less than men and consequently save less for retirement. In a recent national survey, over 50% of the women surveyed felt unsatisfied with their current financial situation and uncertain about future financial needs.

The current recession has been hard on middle income Amereicans, with many indicating that they have not been able to increase their retirement savings. The survey we cited showed that a majority of women feel they are not saving enough.  Women's increased longevity, coupled with the demise of traditional pensions put them at risk for outliving their assets.

A healthy 65 year old woman has a 50% chance of living beyond age 88 and a 25% chance of living beyond age 94. Income annuities have become very popular among women, concerned with a guaranteed income that they cannot outlive. Recent sales results from the industry show that nearly 3/4 of the immediate income annuities sold in the last twelve months have been sold to women.

 While income annuities will not generally provide all of the income necessary for a comfortable retirement, they, in combination with social security, can establish a dependable base of income. Increased saving and investment will have to provide the additional asset base needed, or many women will find themselves working well beyond normal retirement age. 

 It is encouraging to see that so many women are looking seriously at this looming issue. Unfortunately, too many so called "baby boomers" have all but ignored this and done little to increase their retirement assets. 

 A number of the newest income annuities are able to provide inflation pegged income that will increase with the cost of living. This has been a concern, as most annuities provided only a fixed income no matter how long one lived. Every woman who is concerned with adequate retirement income should at least familiarize themselves with the ways in which income annuities can help to guarantee an acceptable retirement income.

 For additional information, please contact anadolna@associatesgroupinc.com