Jodi Perez and Jeannie Holliday were named to the 2024 edition of the Forbes list of Best-in-State Top Women Wealth Advisors


Monday – Thursday: 9:00AM – 5:00PM | Friday 9:00AM – 4:00PM

CALL US: (813) 908-2701


Book An Appointment

Call: (813) 908-201

As women approach retirement, women have particular financial demands and worries. They frequently have to work more to make less money than men, but because of their longer lifespans, their savings must last longer than the average male retiree. Because of this, annuities may be the perfect option for women seeking a reliable retirement income. 

What is an annuity?

An annuity is a form of insurance agreement that disburses recurring payments over time. It functions by putting money aside that you put in throughout your working years and investing it so that it grows over time; when you reach retirement age, this money will start paying out at regular intervals. Having a fixed monthly income removes uncertainty about the markets or other investing risks.

Annuities are also excellent vehicles for all types of people entering retirement because they come in a variety of varieties depending on personal circumstances and special demands, such as fixed rate versus variable rate, immediate versus deferred and qualified versus non-qualified accounts. 

Key reasons why women should invest in annuities as part of their retirement plan: 

Investment Flexibility

When it comes to planning for retirement, annuities are a great option for women who want guaranteed income with no worry about market volatility.  It may also be less expensive than other types of investments; since again the payouts are based on life expectancy and not market performance

Easy to Understand

If you’re feeling overwhelmed by all the different investment options available, annuities could be a simpler option for you. An annuity contract is a straightforward and simple agreement between you and your insurance company – it can help eliminate some of the confusion associated with other more complex investments. 

Tax Advantages

Investing in an indexed or variable annuity could provide tax advantages when it comes time for withdrawals from your nest egg during retirement age. For example, if you decide on receiving guaranteed income through an immediate fixed annuity, then all payments will be taxed at ordinary income rates instead of capital gains rates which could potentially save you money over time. 

Establish an Inheritance

Annuities are also a great way to pass on a financial legacy to your family. If you select the correct annuity option, then you can set up a guaranteed payout for your heirs after your death. 

Guaranteed Income

For women who seek a consistent income over a long period of time, particularly those who don’t intend to work after retirement, annuities are great because they can offer regular distributions that complement Social Security, pensions, and other retirement savings. 

Additionally, due to the long-term security they provide, annuities may be particularly appealing to women. With a guaranteed income for life, women can feel confident in the knowledge that their retirement will continue as long as feasible. This also implies that there are no negative consequences if you live longer than anticipated, which is something that is happening more and more frequently. Plus, if your partner outlives you, he or she may be able to receive some of the payments as well, giving additional security. 

Work with a financial advisor

It’s important to understand that annuities are not for everyone, and it’s always a good idea to talk to a financial advisor who will help you evaluate your individual situation and decide if an annuity is the right choice for you. They can also provide more information on how they work, the different types available, as well as the associated fees and tax advantages.

If you want to know if an annuity is right for you, talk to our financial advisor today! At Independent Financial Services we have professionals that can guide investment strategies, tax-efficient savings options, and retirement income planning. By working with one of our professionals, women can feel confident that they are making informed decisions about their financial future. 

Get in touch with us today to get started.

While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.