Women of retirement age here in The Villages® and other areas are working more than ever these days. Sure some women may work to fill their time or for a little spending money, but many are working and struggling to get the bills paid every month.
Although it has gotten better over the years, women have statistically been paid less than men in just about every field. Also, many women who are reaching retirement age were homemakers and may have barely put into social security at all. This means they weren't able to put as much into retirement as their male counterparts. So when it comes time to collect social security and cracking their retirement funds open, they still may fall short on making ends meet each month.
So how can women catch up and put their working days behind them? Many economists say annuities are an excellent choice for women when they are ready to quit the workforce. Fixed-rate annuities behave much like CDs by offering a steady interest rate for years. The level of protection varies from state to state but can help build savings in a hurry.
Lifetime annuities are another excellent route for women. Instead of depositing your money into a fixed annuity and annuitizing it later, you can use the funds to purchase a deferred lifetime annuity immediately. This is great for women who need that extra cash flow now to supplement their income from their workforce.
With a lifetime annuity, you deposit your money with an insurance company that will then begin paying you a lifetime stream of income at any date in the future you choose. The longer you can wait, the bigger the payments will be. However, if you need the money right away, you can select an immediate lifetime annuity.
It is best to talk with a financial advisor, such as West Financial Group, to be able to make the best-informed decision for your financial future. Contact our Villages office today for a consultation.