3 Surprising Reasons Women Should Consider an Annuity
Written by
Jennifer Taylor
Edited by
Nick Friedman
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Retirement planning seems like a pretty universal process. But the truth is, like so many other things in life, it’s different for men and women.
If you haven’t taken this into consideration, your current retirement strategy might not be living up to its full potential.
As a woman, you’ll need to plan for some specific things after you leave the workforce, the ParityFlex™ annuity, available on the Gainbridge® digital platform,could be a smart way to help you prepare — it was created by women, for women and offers guaranteed returns of APY*.
What is An Annuity?
An annuity is a contract between you and an insurance company that provides a future payout in either a lump-sum or a series of payments. One of the main functions of annuities is to remove the risk of retirees outliving their savings.
In other words, you could earn a guaranteed annual paycheck for the rest of your life.
Even better, annuities may offer higher APYs than traditional savings accounts or certificates of deposit, and they are more flexible. The ParityFlex™ annuity, available on the Gainbridge® platform, for example, offers guaranteed returns of APY* — more than 11 times the national average savings account rate, without the risk of the stock market.
So why are annuities a good idea for women? Here are some surprising reasons:
1. The Gender Wage Gap
Overall, women are paid 84% of what men are paid, according to the Department of Labor1. This disparity is even greater for Black and Hispanic women2.
Two of the main causes cited for this are women’s labor being undervalued and women being more likely to work in low-paying jobs than men2.
Technically speaking, this means women need to save an even larger portion of their income for retirement than men, to make up for the difference. However, this is typically easier said than done. That’s where an annuity like the ParityFlex™, available on the Gainbridge® digital platform, can help — it guarantees an annual income for the rest of your life. See how much you could earn here.
2. Women Often Spend Fewer Years in the Workforce
Whether it’s fair or not, women tend to take time away from work to care for others more often than men do. Regardless of age or parental status, women were five to eight times more likely than men to have caregiving impact their employment in 2022, according to The Center for American Progress3.
Taking extended time off of work to raise children or care for family members means fewer years in the workforce — and less time and money to save for retirement. This is especially true with employer-sponsored plans. This can also impact Social Security benefits, as years when you didn’t work or had low earnings can ultimately translate to a lower benefit amount than someone who steadily worked full-time4.
3. Women Tend to Outlive Their Male Partners
No one wants to run out of money in retirement, but it could happen — especially for women. The average life expectancy for women in the U.S. is 79.3 years, compared to an average of 73.5 years for males, according to the Centers for Disease Control and Prevention4.
If your spouse’s Social Security benefit was greater than yours, you may still be eligible to receive it, but you would likely have to forfeit yours5. The ParityFlex™ annuity, available through the Gainbridge® digital platform, may help ease this stress by providing a guaranteed paycheck for life.
3 Ways Women Can Benefit From an Annuity
1. Guaranteed Income
Retiring from your job is a big deal. You gain a sense of freedom, but lose a steady income.
The ParityFlex™ annuity, available through the Gainbridge® digital platform, can change that by offering guaranteed income for life.
With the ParityFlex™ annuity, a guaranteed lifetime withdrawal benefit is included free of charge. This allows you to receive a predetermined amount of retirement income for the rest of your life.
The amount received is based on the starting value of the account when making withdrawals begins, assuming certain conditions are met. This includes having an income start date that doesn’t occur before reaching a minimum age for a lifetime withdrawal percentage.
No one wants to run out of money in retirement. This is your chance to ensure that you’re financially stable for life — no matter how long yours is.
2. Better Rates
As of April 15, 2024, the national average interest rate on savings accounts is 0.46% APY, according to the FDIC7. In comparison, the ParityFlex™ annuity, available through the Gainbridge® digital platform, has a APY* — more than 11 times the national average.
Of course, interest rates tend to ebb and flow, but with the ParityFlex™ annuity, the interest rate is locked in for a seven-year guarantee period.
This allows for taking advantage of a competitive interest rate for seven years. Compound interest adds up fast, so securing a higher interest rate now can quite literally pay off later.
For example, if you invest $20,000 at APY* for seven years, you’ll earn $8,580 in interest. Comparatively, $20,000 invested at 0.46% for seven years earns just $654.48 in interest7.
3. Wealth Protection
Investing your money in the stock market can result in major gains, but also comes with the risk of major losses. If you’re looking for a more stable option to round out your retirement savings, an annuity could be a smart option for you.
The ParityFlex™ annuity,available through the Gainbridge® digital platform, allows you to grow your money while shielding it from market volatility.
Want to feel more confident in your retirement plan? It’s easy to get started earning APY* with a ParityFlex™ annuityavailable through the Gainbridge® digital platform — an annuity created by women for women. See how much you could earn for life.
*Annual Percentage Yield (APY) rates subject to change at any time, and the rate mentioned may no longer be current. Please visit gainbridge.io/parityflex for current rates, full product disclosures and disclaimer, and other important information. All guarantees are based on the claims-paying ability of the issuing insurance company. ParityFlex™, a multi-year guaranteed annuity, is issued by Gainbridge Life Insurance Company, Zionsville, Indiana.
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