“Empowering Women’s Financial Security: 3 Unexpected Benefits of Incorporating Annuities Into Retirement Planning
Retirement planning seems to be a fairly universal practice. However, as with so many other aspects of life, men and women have distinct experiences. If you have not taken this into account, your existing retirement strategy may not be working to its full potential.
The ParityFlex™ annuity, accessible on the Gainbridge® digital platform, delivers guaranteed returns of 5.95% APY* and was established by women for women, making it a sensible solution to help you prepare for your post-work life.
What is an Annuity?
An annuity is a contract between you and an insurance company that guarantees a future payout in either a lump sum or a series of payments. One of the primary purposes of annuities is to eliminate the possibility of retirees outliving their resources. In other words, you may have a steady annual income for the rest of your life.
Even better, annuities may offer larger annual percentage yields than standard savings accounts or certificates of deposit, as well as greater flexibility. The ParityFlex™ annuity, offered on the Gainbridge® platform, provides guaranteed returns of 5.95% APY*, more than 11 times the national average savings account rate, without the risk of the stock market.
So, why are annuities helpful for women? Here are some surprising explanations:
1. The Gender Wage Gap
According to the Department of Labor, women earn 84% of what males do. This discrepancy is much larger among Black and Hispanic women.
Two of the primary reasons given for this are that women’s labor is undervalued and that women are more likely than males to work in low-wage jobs. To compensate for the disparity, women must save an even bigger part of their income for retirement than men do.
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However, it is sometimes easier said than done. The ParityFlex™ annuity, available on the Gainbridge® digital platform, provides a guaranteed annual income for life. See how much you could make here.
2. Women Often Spend Less Years in the Workforce
Whether it’s fair or not, women spend more time from work to care for others than males. Regardless of age or parenting status, women were five to eight times more likely than men to have caring interfere with their career in 2022, according to The Center for American Progress.
Taking longer time off work to raise children or care for family members results in fewer years in the workforce—and less time and money to invest for retirement. This is particularly true for employer-sponsored insurance.
This can also have an influence on Social Security payments, as years of not working or earning low wages can result in a lesser benefit amount than years of steady full-time employment.
3. Women Tend to Outlive Their Male Partners
Nobody wants to run out of money in retirement, but it is possible—especially for women. According to the Centers for Disease Control and Prevention, the average life expectancy for women in the United States is 79.3 years, while men have an average of 73.5 years.
If your spouse’s Social Security benefit was more than yours, you may still be able to receive it, but you will most likely have to forgo your own. The ParityFlex™ annuity, available through the Gainbridge® digital platform, may help relieve stress by providing a guaranteed lifetime payment.
3 Ways Women Can Benefit From Annuities
1. Guaranteed Income
Retiring from your job is a huge thing. You get a sense of freedom but lose your steady paycheck. The Gainbridge® digital platform offers the ParityFlex™ annuity, which provides guaranteed lifetime income.
The ParityFlex™ annuity provides a free guaranteed lifetime withdrawal benefit. This provides you with a predetermined amount of retirement income for the rest of your life. The amount received is calculated based on the account’s starting value when withdrawals commence if certain conditions are met. This includes having an income start date that does not coincide with achieving the minimum age for a lifetime withdrawal percentage.
Nobody wants to run out of money during retirement. This is your chance to assure that you will be financially stable for the rest of your life, no matter how long that is.
2. Better Rates
According to the FDIC7, the national average interest rate on savings accounts will be 0.46% APY on April 15, 2024. The ParityFlex™ annuity, available through the Gainbridge® digital platform, has a 5.95% APY*, which is over 11 times the national average.
Although interest rates fluctuate, the ParityFlex™ annuity guarantees a fixed rate for a seven-year period. This allows you to take advantage of a competitive interest rate for seven years. Compound interest accumulates quickly, so getting a higher interest rate today can practically pay off later.
For example, if you invest $20,000 at 5.95% APY* for seven years, you will receive $8,580 in interest. $20,000 invested at 0.46% for seven years earns only $654.48 in interest7.
3. Wealth Protection
Investing in the stock market can yield significant returns, but it also carries the danger of significant losses. If you want a more dependable way to supplement your retirement savings, an annuity may be a good choice.
The Gainbridge® digital platform offers the ParityFlex™ annuity, which protects your money from market volatility while increasing its growth potential. Do you want to feel more assured about your retirement plan? Earn 5.95% APY* with a ParityFlex™ annuity on the Gainbridge® digital platform, designed by and for women. Calculate how much you could earn over your lifetime.
Conclusion
Retirement planning, particularly for women, necessitates customized solutions due to unique problems such as gender income disparities and interrupted careers. The ParityFlex™ annuity on the Gainbridge® platform offers guaranteed returns of 5.95% APY*, exceeding national averages and guaranteeing lifelong financial stability. It ensures a worry-free retirement by providing guaranteed income, lower interest rates, and wealth preservation.