Did you know that according to the U.S. Department of Labor, women are twice as likely as men to live below the poverty line during their retirement years? Here’s why: On average, women earn 76 cents for every $1 that men earn. Women also change jobs more frequently and work part time more often than men. This means a woman may only receive half the company-sponsored pension benefits a comparable man might get, if she receives any pension benefits at all. Because women live longer than men, they must prepare for a longer retirement, which means they will have to stretch their lower income over a longer number of years.

Playing Catch-up: Annuities as the Solution

“Less savings and lower income lead to a greater risk of women outliving their financial assets and facing substantial declines in their standard of living during their retirement years,” notes Josh Klein, Director of the Life Insurance Division of The NIA Group and Kornreich-NIA. “Annuities can provide a unique solution to the challenges many women will face in retirement.”

How Annuities Work

Annuities provide a steady stream of income that is guaranteed to continue for a lifetime. With the right annuity, you don’t have to worry about outliving your retirement assets.

Annuities offer many advantages. With a deferred annuity, the money you invest accumulates tax-deferred, which means that taxes are not paid on your earnings while your money grows. Taxes are only paid when the earnings are withdrawn. (However, any withdrawals made prior to age 59 may be subject to a 10% tax penalty) This option allows your money to accumulate much faster than it might in a comparable, currently taxable investment.

An annuity can also provide you with the flexibility to handle life changes. With many annuities, you can add to your policy as your finances permit. You can even arrange to make regular contributions directly from your checking account. Additionally, some annuities offer a guaranteed death benefit feature that allows the annuity proceeds to be passed on to your loved ones free of probate.

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For more information on how annuities can help you accumulate money for your retirement, contact your NIA or Kornreich-NIA insurance broker or Josh Klein at (212) 867-0070; jklein.kornreich@niagroup.com.